Absolutely correct Twinsen - add in an existing technically...

Absolutely correct Twinsen - add in an existing technically overbought condition plus the September Option contract expirey 25/8/11 and easy to see why we have falling paper gold prices. Good luck to those nimble traders who have successfully played the shortside.

Any QE related dialogue this Friday or even a hint that it is under consideration then gold will be trading $1800+ by the end of the week. The market now has a very short feel and I suspect we will see plenty of short covering by the close of business Friday.

Finally it is worth looking at the share price of Newmont the last 2 days - down only 4%......