As we know the Taper ghost is here. But does it change anything in our outlook for the upcoming 2014?

In the January 2014 Market Overview report we illustrate just how much is different after Fed's recent comments and the decision to taper the open-ended Quantitative Easing program, and we discuss Fed officials' predictions regarding interest rates in 2014 and 2015.

There is much speculation on how the balance sheet is to be adjusted. In general the Fed communicates to the public the program as it is aimed at some particular macroeconomic variables such as GDP growth, inflation rate and so forth. Actually it is more probable that the program is based on direct considerations about the financial market. In the January report we discuss the probable real reason behind the tapering.

As always, the report discusses the implications of the above for the gold market.