Gold prices have settled around USD $1240 as markets await this week's FOMC decision around QE Whilst many participants think recent data warrants the...

Gold prices have settled around USD $1240 as markets await this week's FOMC decision around QE Whilst many participants think recent data warrants the beginning of tapering this month, most still beleive the Fed will wait until Q1 of 2014, allowing Yellen time to get 'use to the chair' so to speak. Despite this, the gold market is short, and a 'no-taper' decision could see prices rally, particularly if we see some position squaring as we head towards Xmas. Alternatively, a larger than expected taper could see gold head back toward (and possibly below) the critical USD $1200 mark. Either way, it's unquestionable that sentiment is incredibly bearish, with UBS AG, HSBC, Socgen, Goldmans, JP Morgan, Credit Suisse and Macquarie all negative as we head into 2014 In the short term, this bearishness might portend lower prices, but from a contrarian perspective, it makes the opportunity in gold and silver just that bit more attractive