The all-important FOMC meeting should be concluded and if it went to form the members spent all of 20 minutes deciding the fate of the world and 2 days figuring out how to communicate that to us mere mortals.  When you think of it like that the idiocy of central planning is pretty stark.   But, be that as it may coming into this meeting gold has been under intense pressure to break decisively below the $1300 level, which has been achieved if only just barely.

At this point, the gold market is trading so completely counter to the rest of the market that it makes almost no sense to attempt to figure out if tapering at this point ispriced-inor not.  In the short-run, what the Fed wants the Fed will get and if the Fed wants gold slammed lower to defend the Dollar heading into the wildcard of the German elections, then that is what will happen.

But, keep in mind that as the Fed continues this very dangerous game the physical markets are being drained of all available gold and the second that GOFO rates peeked their heads above zero the weakness in gold re-appeared.  The latest version of the new normal now must be zero GOFO rates as well as zero-bound interest rates.  This game will continue until there is no more physical gold to be sold into the market.

Watch for an assault on gold after the FOMC statement, if there is not a re-test of the $1276 level then the bulls are firmly in control and will be ready to take the market higher.