so you don't agree then that the drop in the gold price had more to do with the liquidation of Bear Stearn's long position than in anything fundamental? How do you explain these three movements; (a) US interest rates down (b) Gold down (should go up) (c) USD up (should go down)
BS was long gold and short USD in a massive way. The US Fed liquidated these positions after Monday's prices and sold BS to itself (JP Morgan is the majority shareholder in the US Fed)
