The vampire squid (aka Goldman Sachs) came out yesterday and announced that gold is 'overvalued.'
It did not result in a big sell off as perhaps was intended, although the metals were under pressure for their Comex option expiration.
Registered gold held for delivery was down to a new recent low at 1.36 million ounces. Perhaps the Street wants to provoke another paper sell off to justify the release of more bullion from the GLD ETF.
With physical gold in short supply anything that triggers buying could ignite quite the short covering rally. I think the long stocks - short gold cross trade is getting a bit tired.
Let's see what happens.