The selling in the market over the previous few days did look a lot like capitulation and we have probably set a near term low. I would however not expect that the market turbulence is over yet. There is still a whole lot of bad news to come out in the financial sector as more companies come clean. There are also major worries about the solvency of the bond insurers. I expect the major problems here to be sopped up by the fed behind the scenes similar to the orchestrated Countrywide Financial buy out by the Bank of America.

I think this does however guarantee that the US dollar will deflate and this new money creation will cause US inflation to pick up both of which will be good for gold.