WTF happened to GOLD?!

Holy cow!

 

the $ is very strong today vs. the euro so that may have something to do with it.

 

dollar making new highs?

 

I know higher interest = higher dollars. Higher dollars usually mean lower gold. But i didn't expect the drop to be that huge.

oh well.

 

There goes my theory that the current economic policy in America was to inflate the defict away. Such a drop in Gold runs counter to my theory though. Maybe I should have more faith in the United States dollar.

 

Who was the poster who said this time its different for gold?

 

Don't forget Canadian markets are closed today for holiday. THey are big players in gold and will probably run it back up on monday.

 

it could be this idea: greenspan signaled yesterday that he will raise rates as necessary to control asset inflation. gold is a hedge against inflation. if greenspan does his job gold will be less desirable as a hedge.

 

and WTF happened to crude oil !!!!? lol

well I guess gold was a little bit extended (look at weekly and monthly chart can you say top of the range?), lots of people were getting excited about a breakout wasn't going to happen without a pullback first

 

Gold down big, with oil up big?

That's pretty unusual.