Gold is now sitting at $1587 indicates there will be no bailout for Europe. The size of the bailout needed should induce gold up to $1900. I would expect a price way above $1600.
Normally you would think a bailout would cause preemptive stability or rise in the gold price.
If gold falls like it has in a crisis situation you would expect the market to crash in expectation any bailout hopes had failed. But the market is very stable.
In other words the market is contradicting itself. Signals of a failing Europe reflected in the gold price but the market remains relatively stable. I can't work it out.
