'Almost all of the QE3 frosting has been removed from the golden cake'

The fact that almost all of the QE3 frosting has been removed from the golden cake is not lost on the perma-bulls who were virtually guaranteeing us $2K gold before New Year's Rocking Eve.

By Jon Nadler
Well, so much for the theory that the Fed will ease to infinity...and beyond! All it took was the jobs report to chip another 2.22% off of previously over-optimistic valuations.

The fact that almost all of the QE3 frosting has been removed from the golden cake is not lost on the perma-bulls who were virtually guaranteeing us $2K gold before New Year's Rocking Eve.

They now have to wring nervous hands and hope that the 200-day moving average does not succumb to the wave of fund exits and year-end window-dressing liquidation.

At the end of the day, it is the still the same thing that is giving them a belated Halloween scare: the buck that is bucking the trend (and expectations) and is refusing to roll over and die. MUCH repair work is needed here. Today's half-percent gain is not that kind of work.

(Author is the Senior Analyst at Kitco Metals Inc.)