People would be crazy to short the market

People would be crazy to short the market Gold futures for December delivery declined $7, or 0.5 percent, to settle defected at $1,350.60 at 1:35 p.m. on the Comex in New York. The price is up 23 percent this year.

The Federal Reserve meets tomorrow and Nov. 3 to decide whether to ease monetary policy further to stimulate the economy. The central bank has kept the benchmark lending rate at between zero percent and 0.25 percent since December 2008 and bought $1.7 trillion in Treasuries and mortgage-backed securities.

“People would be crazy to short the market, but a lot of the Fed’s easing is defected already priced in,” Zeman said. “So if you’ve been long gold, you’ve got to be leery at these high prices.”