In a dramatic turnabout, market participants now believe the Federal Reserve is more likely than not to resume purchasing assets during the next year in a third round of quantitative easing

Participants believe there is now a one-in-three chance that the US enters recession in the next 12 months

Stocks will rise strongly from the current low levels, but are not seen regaining the highs of this year anytime soon

By year-end, the 10-year Treasury yield is seen at 2.61 percent, compared with an average forecast of 3.41 percent in the July survey. In June 2012, the 10-year bond is seen yielding just under 3 percent, 75 basis points lower than forecast in the July survey.

In terms of fixing the US economy, 31 percent favored additional government stimulus, but 25 percent opposed it and 44 percent were neutral.

Wells Fargo's Mark Vitner said: "I would be in favor of additional fiscal stimulus if I thought it could be done well. I do not have much confidence today, however. "

But 57 percent said the biggest danger to the US economy is cutting government spending too quickly while 43 percent said the bigger threat is not getting the deficit under control quickly enough.

http://www.cnbc.com//id/44110109

As we said yesterday there is a risk of a correction in the light of the CME margin increase but smart money is positioning itself to buy on the dip.
Physical demand for gold internationally remains robust - especially in Asia – which will support gold

http://www.tradingfloor.com/blogs/equity-week-ahead/beware-of-the-technical-rally-857900678?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Trading-Floor+%28TradingFloor%29&utm_content=Google+Reader