Back in the day, a few years ago, when gold was soaring, anti-Fed types saw this as indication that Bernanke was blowing bubbles and creating hyperinflation.
Of course, the price of gold is just the price of gold, but it didn't stop people from making bold statements about how gold was "voting" against Fed policy so to speak.
Well now gold is totally crashing.
At the start of April it was near $1600/oz.
This morning it's not much above $1200/oz.
Today alone it's down over 3%.
And this time it won't be the hard money inflation hawks who get nervous. It will be the deflation hawks.
The latest turn down in gold comes as people worry about "the taper" and the notion that now Bernanke is being too tight, ignoring signs of disinflation or deflation while talking about exit scenarios.
Of course, the price of gold is still just the price of gold, so you can't make a grand pronouncement about Fed policy from it. But watch for the folks who think Bernanke is being dangerous with his taper talk to start citing gold.
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