The volatility was caused by fickle traders, trying to get on the right side of this news driven market, and of course some short covering, as there were many short positions above 1640 that were being tested recently where as the long term accumulators of physical gold did not rattle at the no QE3 result, as the market only had a slight sell off, traders reversed direction seeing a solid floor in the spot price of gold.
As i said in another post, negative real rates will be low until at least 2014-2015, a significant factor in putting a floor under the gold price IMO.
Good weekly and monthly close for gold and silver, and coming into stronger seasonal periods for the metals as well.
If the USD index, which is on the edge of a negative momentum change breaks down from here, its off to the races for the next 6-9 months for precious metals.
