the volitility has more to do with the scarcity of gold on the market IMO (something like my gold juniors!)- t'was only six months ago that it was <750USD
you would have to be nuts not to have a bucketful of the yellow stuff somewhere - YTD it has done 27% AUD last time I looked, and anyone with half a brain and a computer can see that this financial crisis is no where near getting sorted
I read somewhere that the CB gold sales bit has been trotted out before at opportune times and never actually happens - they will have to think of something else soon to give us bugs and CB brokers a buying opportunity