[old republic]

Sounds like France has been as fiscally responsible as the US. We should be very concerned about the Chinese and Japanese turning their reserves into gold. It threatens to destabilize the dollar and it could be destructive to the US economy. Spikes in gold are often times an ominous sign.

[beaver fever]

This particular spike is a bit opaque. Japanese dollar buying maybe just a signal for speculators to do some profit taking.

Hence the $17.00 fall back on the gold price. It will be interesting what gold does from now til February.

If Gold rebounds in the first quarter 2006 then you are looking at gold bull based on currency instability and supply side fundamentals. That is the indicator of a precious metals breakout that will be sustainable.

[beaver fever]

Sorry dollar buying should be gold buying.

Also Russia is icreasing it's gold reserves.

There seems to be a general flight from fiat currency not just the US dollar. Japanese gold buying could be a reaction the weakness in the Yen.

You know there is a problem when a country goes to gold when their own currency is devaluating.

The Rats are the first to leave a sinking ship.