Remember in the credit crunch the USD rallied sharply as no one...

Remember in the credit crunch the USD rallied sharply as no one was willing to sell their USDs & everyone wanted out of currencies as well as gold. The market was massively long gold then & the main reason they got out is that there were massive margin calls on equity positions that needed funding so even if you didn't want to sell your gold, some had to. The market is getting longer here, but nothing like it was in 2007/08 so if there is a similar event gold may pull back but I don't see it crashing, although under similar circumstances I do see gold rebounding very sharply.

The European banks are the ones to watch, although the US banks do have some exposure its not nearly as heavy. Although Citibank just wrote of reasonable sized losses in Mexico in the last few days.