I'm not too sure the shorts on the Comex have any more teeth. If 45% of the gold on reserve has been taken by December contracts, what will be left to play with at the end of January, when the January contracts come due?

Considering that this was probably the Fed's last bullet (how can you go any lower in terms of interest rates, and will promising to spend trillions more change anything?) the rally today was quite lacadaisical. This does not bode well for the markets.

I hope I'm wrong. Maybe I'm too much of a pessimist. But I think things are about to get even uglier.

And gold will at least hold. Who would sell, when the U.S. genuinely looks worse than ever?