After an hour of volatility a clear taper trade has taken hold (at least it has outside of stocks).
Gold is at the lows of the day, down $14 to $1216. A close here would be the lowest since July but the intraday level to watch is $1210, which was the low in December.
Aside from broad dollar strength, the gold bugs have very little to cling to. With the Fed slowly tapering and the deficit improving, it’s tough to find a great reason to buy gold.
