All the fundamentals would suggest that we are going to stay at these high prices. Inventories are low, the market is tight and China is a big buyer. |
It's just a nail in gold's coffin. |
The fundamental feature was the strength of the dollar versus the yen -- and statements that the Japanese won't be supporting the yen. And no one wanted to be long in gold over the weekend. |
The political hedge used to be a major source of demand for gold. But it is no longer there at the moment. |
The world's relatively calm and no one's expecting World War III anytime soon. |
There have been a lot of problems: the Nikkei in Japan hit 12-year lows, there was fear the Russians would dump metals, and the Dow is off 20 percent in the last six weeks. |