just cracked 890 usd, page-14

Interesting to note the divergence though. Last time gold fell a decent amount ($1030 down to $688) from March on last year, the gold shares were already down 30%, while this time they are coming off, but definately not breaking down.

This is the effect of 211 tons being sold by European banks in the 2-3 days after the US QE announcement. The sales inhibit the ability of the market to rise to what would be the 'clearing price', and as a result when prices move down due to a normal correction, they are far closer to support than they would be and hence find it so much easier to go through it.

My short term bias was definately to the upside after the QE announcement. I stand corrected, but am just dumbfounded that anyone can think that QE is bearish for gold and that this is a market that is functioning free from interference. Gold's status as enemy of the state has been fulfilled once again.

If the USD