Yes the paper gold price is getting hammered again this morning by those seemingly not for profit sellers right at the open of the Comex.

Lets see what is the excuss today. Oh yes, China may consider tightening its monetary policy. Well I guess in that case they must be thinking of once again allowing there currency to appreciate against the US. Well that is smart and exactly what I know they eventually will do in order to control inflation in there country and be able to import and buy resources more cheaply.

In the perverted logic of the markets today for some reason that means the US dollar goes up significantly too hahahahahaahahahahahahahahahahahaha. Of course the US dollar does not include the Yuan in the basket of currencies it is measured against so any increase in its purchasing power does not reflect negatively in the relative strength of the US dollar.

I guess everybody has forgotten about the dollar carry trade. That carry trade thing that happens whenever a central bank lends money at 0% and even negative interest when inflation is counted.

All in my honest opinion of course.

F.F.