“It is widely touted at this point that tapering really cannot begin this year and probably won’t begin until Q1 or Q2 of next year,” he adds. When looking at the correlation between gold prices and equities, Wagner says something interesting is developing.
“You typically do not see both gold and the equities markets running in the same direction,” Wagner says. “What we’re getting now is the perception that ‘no tapering’ is bullish for equities as well as being bullish for gold.” Finally, Wagner talks about European news and notes that the US dollar has been under pressure vis-à-vis the Euro. He goes on to comment on what this can mean for gold.