Hi Bigpic, yep, as soon as Asia opened a few minutes ago an ambush was waiting for both gold and silver. Funny, how gold and silver tend to fall sharply within minutes at market openings but their equivalent rates of gain take days and weeks. Even more surprising is that the Russian foreign minister just announced that ..."Georgia could "forget about'' getting back its two breakaway provinces, and the former Soviet republic remained on edge as Russia sent tank columns to search out and destroy Georgian military equipment." So much for the supposed cease fire. It seems any Russian show of strength is met with a gold sell-off. It was only a few weeks ago that any threat to a crude oil pipeline, especially a major one like in Georgia, would have sent crude prices soaring. Something to look forward to tomorrow is that Condi Rice is going to Georgia and snubbing Moscow. Since we all know how Putin despises her, we will see what he has planned for the reception.

In the meantime, China is watching this exchange with their hands tied with hosting the Olympic Games. The resolution of this major central bank intervention will be quite the show.

Regards - VHF