from ainsley bullion company today - re china, page-27

All4One, risk-on risk off is the simple way to explain it. Investors believe the US economy is on the path to recovery so the DOW/SPX are making new highs.

This is now filtering down to the riskiest of assets, including junk bonds and their yields are falling. For one minute, I don't think this is sustainable but the market is the market.

Clearly investors/institutions have sold gold to buy these other asset classes.

This guy sums up the situation nicely:

"There’s been a lot of physical buying out of China and India and lots of selling still from institutional investors and that’s where your tug of war is,” said David Wilson, a metals analyst at Citigroup Inc. in London. “Retail buying is not surprising, it’s in reaction to lower prices. We’re seeing a lot of investors betting on a continued recovery in the U.S. A lot of liquidation of gold positions we’ve been seeing from the institutional side has been flowing into equity markets."

http://www.bloomberg.com/news/2013-05-09/gold-traders-divided-amid-worst-etp-rout-since-04-commodities.html