By Global Macro Monitor
You can see from the chart that gold starting selling off right around the release of the Beige Book yesterday,
“Reports from the twelve Federal Reserve Districts suggest overall economic activity expanded at a moderate pace during the reporting period from early April to late May,”
Though Vice Chairman, Janet Yellen, threw the bugs some QE red meat, Chairman Bernanke disappointed. We were expecting more positive QE speak from Mr. Bernanke, but not surprised by the sell-off.
It’s almost Kafkaesque to think the Fed is flirting with another round of QE with the Nasdaq up almost 10 percent for the year. What’s up with that? Economic and monetary theory is seriously broken, folks, and the policymakers are, at best, grasping at straws.
(click on graphic to enlarge)