Citi: Gold weakness to continue through year-end

|By:, SA News Editor

Gold got a "short-term reprieve" by the postponement of the taper, says Citi's Ed Morse and Heath Jansen, but it's just a reprieve. The unemployment rate continues to grind downwards to the Fed's target level, and Bernanke made clear there's no pre-set time-table for the taper, and a "major policy change" could come at any meeting.

The two see gold falling back below $1,250 by year's end. Way ahead of the analyst team, gold has already given back its post-Fed pop, and is off another 0.8% today to $1,321 per ounce.

ETFs: GLD, IAU, SGOL, PHYS, AGOL, DGL, UBG, DGP, UGL, DZZ, GLL, DGZ, UGLD, DGLD, GLDI.