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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Zincman who wrote (41118)	2/19/2013 5:38:24 PM
From: Zincman	Read Replies (1) \| Respond to of 48092

Thus, tomorrow is a big day for gold. Xiao writes: Gold returns have historically performed well when short- and long-term real interest rates are low or negative. Successive rounds of QE programmes over the past few years have worked to push U.S. 10-year real Treasury yields deeper into the negative territory. More recently, the Fed’s rhetoric regarding potential QE exit has lowered market expectations of future QE and the decline in 10-year real yields has reversed. As the macro outlook improves, ultra-accommodative monetary policy will become harder to justify. Our Economics team expects the Fed to begin unwinding its unconventional policy by ending QE purchases around Q4 this year. This could lead to higher yields and further headwinds for gold prices. Even so, the erratic nature of the recovery in U.S. real economy data indicates that real yields and the gold price will remain sensitive to Fed speak. Consequently the release of the FOMC minutes this Wednesday will provide important guidance on the U.S. monetary stance and thus gold prices in our view.