[dennisw]

Well ... that was my take as well. I sold all my gold stocks today.

Gold moves with oil these days. 

My logic for dumping oil would be that hedge funds have are responsible for 20-30$ of oil's price. That hedge funds are not able to borrow like crazy anymore due to general drying up of credit. Hedge funds have "liquidity" problems and margin calls and are forced to dump oil positions

[ThePythonicCow]

That hedge funds are not able to borrow like crazy anymore due to general drying up of credit.

More than just the hedge funds that are having trouble getting credit. The major banks are scrambling to cover depreciating assets in order to maintain legally required asset ratios, so are reluctant to lend to anyone under less than excellent terms.

That's why Helicopter Ben isn't causing serious inflation. Some inflation, here and there, as everything shifts around. But for every dollar Ben prints, ten dollars of credit evaporate. We are entering fundamentally deflationary times, in my view.

[RSmithOpt]

More like $40/brl. is speculative.

THe hedge fund dudes are working OT to figure out when to make their move out of oil and gold and into other commodities...food....they all are just squirming and grinning for one more hosing before then.

Most likely May delivery (Memorial Day Weekend). Then, when they see that people stayed home in the US, Wham!!

The stampede to sell will come, and, like you said, gold will follow.