We are convinced that $100s of billions of dollars are simply linked to computer algorithms that buy and sell mindlessly based on technical levels breaking in in the FX markets. Yesturday, we saw a key support level at 1.25 break for dollar-euro probably linked to all sorts of knock-in options, which in turn triggered hedge selling of gold and other markets linked to the sensitivity of the risk-off trade.

Bottom line is that the fundamentals for gold as an alternate currency are bullish because the outlook for global debt de-leveraging is so danm bearish no matter how we slice it.