Volatility.

Since, I have posted about a small correction, the end of it, then an even bigger correction, what gives?

The gold price and the gold market has entered a time of volatility. That is self-evident. But why?

It is not hard to point at possible culprits, but we won't know until someone blows the whistle and publishes the data. Is the FED trying to reduce gold prices (and up the Dollar) to convince the electorate that everything is all right? Or, are the Chinese selling gold to thwart the FED in lowering the value of the Dollar and for an upward revaluation of the Yuan? Or, are gold traders taking a profit and pushing down the value of gold so they can buy more at cheaper prices? Hard to know at this point.

Nov 3 will be an important day. We might know the election results and will begin to see the Market's reaction to it. And we will know (maybe) the outcome of the FED's meeting on Nov 2. Will we get some idea on QEII and its size? Will the FED buy up the 13% of houses in foreclosure or waiting for foreclosure?

Investors know the score, they just don't want to believe it. The FED made it clear that they want more inflation, more money printing. Deficit spending continues. Money printing continues. Gold prices will rise to yet new records.