Gold Has Been Getting Crushed — And That's Revealing Something Important

Gold has dropped below $1700/oz today.

Here’s a chart of the Gold ETF GLD to show how much its fallen in the last few days.


A lot of folks are laughing about the fact that stocks (and gold) are now both lower than they were before QE3 was announced in middle September.

But the real point here is that thinking gold or stocks were “can’t-lose” trades due to the Fed was always nonsensical.

As we’ve argued many times, stocks have traded on fundamentals mostly throughout the last few years. That hasn’t changed, and to the extent that say, earnings, have reduced the outlook for stocks somewhat, QE3 hasn’t changed that… and it apparently hasn’t had the effect on gold people have expected.

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