At this stage we must ask, though, whether or not the perceived benefits of quantitative easing outweigh the potential consequences of perpetuating US debt financing and favoring the banking system over the real economy. The apparent economic ineffectiveness and the shifting mood suggest QE will end or at least be ratcheted down substantially.
A decrease in the pace of money supply growth obviously is not a bullish scenario for gold considering its quantifiable, hard-money qualities. But even if policymakers accept the consensus view of ineffective QE, they're going to keep interest rates as low as they can for as long as they can.
The lessons are becoming clear in Europe where Greece and Spain (and soon Italy) are facing the two-headed monster of rising interest rates and slower growth. In other words: taking on more debt, while the cost of debt is rising and the means with which to pay down those debts is falling, is a losing proposition. Back to the US now where the Federal Reserve's primary goal is to keep interest rates low so America can afford paying its debt.
No new recommendations or adjustments at this time.