Another banking colossus seems to be falling as shown in Chart 1 below. The volume over the past few days on BAC is most revealing. Good chance that their CEO Ken Lewis, who was Banker of the Year in 2008, is on his way out. One would think that such a failure would bid up gold's safe haven status but just remember that gold got whacked when the following titans failed in 2008: Bear Stearns, IndyMac, Lehman Bros, and in mid-October when the banking system was reportedly 3 hours away from collapsing.

Also, in the Chart 2 below, it is interesting that gold broke away from the Euro in late December, which it had been tracking for most of 2008. Since then gold has been tracking the USD. The USD is the last currency that gold has failed to make new highs in but that will soon change.

Regards - VHF

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Chart 1: BAC's Titanic Fall

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Chart 2: Gold vs USD vs Euro