Quote from achilles28:
Gold now acts like currency. It's decoupled from commodities. Risk-on? Gold is up. Flight to quality? Gold is up. The market no longer has full faith in AAA soverign debt (or CASH) as a safe haven. This is A TREND. Next, we could see weakness in Treasuries during risk-off, periods. If that happens, look out.
We're already in deep shit. The European debt contago is unsolvable, as is the US debt problem. I'll be very surprised if Bernacke does not step in with force. Today the market called his bluff for low and long into 2013. FED will be forced to *act* very soon.
He has already stated interest rates are zero for two more years. Logically, what is left for them to do? The balance sheet is bloated and the world financial system is approaching an intractable situation. Buy S&P futures? More QE? Looks like gold is leaving the Fed in the dust, and frankly they appear helpless to be able to stop it, unlike Volcker's day.
