Nomura Explains Why Gold Went Down, And Why It Is Going Back Up

``The last FOMC meeting did not expand the Fed's balance sheet (i.e. QE3), which would have been bullish for gold... However, the Fed has committed to keeping rates low until mid-2013, as well as embarking on Operation Twist, which should be gold-supportive. Indeed, in Figure 2 we plot inverted real rates against gold and find that the price action has been detached in recent weeks. This suggests that it is difficult to attribute the fall in gold purely to the lack of QE3.''