The stock market just popped 50 points in the past five minutes. I wonder if institutional investors are rotating out of gold and into equity. My thought has been that a lot of institutional money has been sitting on the sidelines during the past few weeks, waiting for the market to get to a low enough level for them to see it as undervalued.
Is there any government announcement of a large sale of gold to account for the plummet?
Remember that Britain did that about this time a year ago. I'm not sure of their intent at the time, but I think it was to allay fears of an inflationary cycle.