Gold popped up 1.5% while commodities lost about 2%, breaking a pattern of correlation in which gold traded like any other commodity. One session doesn’t make a trend, to be sure, but if the central banks are flooding the world with currency to support a massive bubble in government debt, the possibility of a portfolio shift out of currencies into gold has to be considered. And if this happens, gold (as I’ve said any number of times) has no natural ceiling. What will China do? The Chinese got burned on subprime and again on PIIGS debt. They stopped accumulating US Treasuries months ago, and have no reason to buy Bunds given the misery of the prospects for the Euro. Note from the table that foreign official purchases of Treasuries have been negligible in recent months. Gold still represents a hedge against the unwinding of the biggest bubble of them all; even investors who are rushing into Treasuries as a safe harbor may buy gold as a hedge.