Fed Taper Question Holds Back Gold as Dollar Falls

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Oct. 29 (Bloomberg) -- Bloomberg's Alix Steel and Bloomberg Industries’ Kenneth Hoffman put futures in focus with a look at the impact confusion over Fed tapering is having on gold in "On The Markets." They speak on Bloomberg Television's "In The Loop."

Five-week high.

That is ahead of the fed meeting.

What if the head continued on the fighting.

Joining me now is ken hoffman.

Here is what i hear.

I still hear $1200 price targets for gold.

Gold prices have been rallying, but the fundamentals still seem week.

At some point the fed will taper in interest rates will rise.

What is moving the price?

Will the fed taper?

That is a really big question.

At some point, maybe.

We began the year -- look at this number, the dxy.

It was at a multi-year low in january.

Gold 1700-1800 rounds.

-- per ounce.

Goal.

211 hundred $70 or so.

Then what happens is the mess over the past few months with government shutdown, said tabling tapering and all of this.

Now we see gold back up at 13 you're so.

-- 1350 or so.

If you are biting futures right now, you are wondering, will the government continued to have shutdowns in december and january and february?

The question is if the dxy at the lowest level since january but gold not reciprocating with its own rally, has this been short covering and no new long's interested in the market?

In terms of the futures market, you are right.

You are seeing physical biting, particularly out of china am at an all-time record.

You are seeing this in the futures market.

A lot of analysts still believe $1200 gold.

Still believe in tapering.

The reason why gold is not at 1200, the other group is saying they will not taper.

They cannot taper.

If they taper, interest rates explode, deficits explode and have problems.

You still have this push and pull with the fed.

What is the best way to make money off the fed wouldn't seem stuck in some kind of range?

It has been in the 1200-1400 dollar range.

You have to make a bet about how the fed will taper or not taper.

What is your bets on janet yellen?

That will tell you whether you are long or short gold.

Gaming the fed and gaming gold.

Certainly a difficult year for

This text has been automatically generated. It may not be 100% accurate.

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