Today was a very disturbing day for gold bugs.
And tonight it’s turning into a nightmare.
It used to be that when the Fed did a new easing move, buying gold was the reliable move.
And today the Fed took two new steps: It announced new QE, and a new “Evans Rule” which said that the Fed would wait until — at a minimum — unemployment fell to 6.5% or inflation hit 2.5%.
After the Fed initially made its announcement, gold spiked.
But the effect is fading. It only took a couple of hours until the spike ended, and tonight gold is tanking some more in early Asian trading.