[video] Quick Take: Gold Slumps as Fed Taper Could Be Sooner, Not Later
NEW YORK (TheStreet) -- After the Federal Reserve acknowledged tapering of its asset purchases could come in a few months, gold prices immediately slumped.
Dan Denbow, portfolio manager for USAA's precious metal fund, told TheStreet's Joe Deaux gold doesn't really have a catalyst to push it higher, which is why it continues drifting lower.
He noted that gold sold off around tapering talks earlier this year, before rallying in late summer on the "no tapering" announcement from the Fed.
Prices of the yellow metal can head higher once the sentiment shifts, Denbow said. He added that commodity prices can change very rapidly and indicated demand has remained strong in Asia and India.
He also said confirmation from the Fed regarding when it would begin tapering and by how much could help gold prices stabilize.Denbow concluded that even when the Fed does taper, it's still going to be buying a lot of bonds and that "global currency debasement will continue." -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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