I don't, 2011 is the commodity cycle high of the first decade, and hyperinflation is likely to break out in the US by mid 2012. If the market is aware of that why would anybody be selling into it? . IMO this is about getting into the habit of trading the USD opposite gold when most of the time gold has risen with the USD while it's been traded down against other currencies.

The EEC has just bailed out Portugal with a little help from China and will be moving onto Spain shortly. Once the euro issue has been thrashed out where will the hedgies go next?

The HUI is appraching over sold conditions and nothing fundamentally has altered IMO. Gold is still only somewhere in interim wave three, and no sign of a bubble anywhere.

Green