Well as suspected, the bear raid on gold yesterday morning was intended to take some wind out of the gold bulls sails that would have occured after the poor anticipated results for the 10 year treasury auction.

In fact the 10 year auction did not go well and the same goes for the 30 year auction today. Both auctions saw a decrease in bond values and drew a large indirect bid. It is highly suspected that indirect bids are in fact FED purchases and thus direct monitization of treasury debt.

If not for the bear raid on thin volume yesterday in the paper gold market we would have already been back to the 1100 mark as I suggested we would be by the end of this week.

All in my honest opinion of course.

F.F.