Gold Downswing is Temporary Due to The Fantasy Of A US Recovery

Hello folks and all of you gold trader, Peter Schiff says "Gold Is Being Undermined By The Fantasy Of A US Recovery", as reported from zerohedge via Tyler Durden, With gold down 10 of the last 11 days, Peter Schiff tells CNBC that this temporary downswing is due to "the fantasy of a US recovery," that so many actually believe and thus, due to this 'recovery' the Fed will taper back its quantitative easing.

"It's not gonna happen," Schiff explains, "we have a phony recovery," and the Fed will more likely increase the amount of QE in order to sustain it, "which is very bullish for gold." Crucially, Schiff clarifies that he "doesn't think a taper is inevitable," as many believe, "but an end to QE won't happen by the Fed's choice - the market will force them to tread on the brakes as the USD collapses."

As we noted earlier, Peter Schiff also believes there is an attempt to do "whatever it takes" to pull the EUR down to maintain the USD - but as today's price action shows, it's not working... "Long-term, the fundamentals have never been better for gold."

Source: Tyler Durden via zerohedge