the washington agreement allows the central banks to sell up to 500 tons of gold per fiscal year, which ends in september. this year the central bonkers (sic) only sold about 320 tons.

1) the swiss have said they are done selling gold

2) the german bundesbank said they will not sell any gold

just in case anyone thinks central banks may not qualify as "smart" money:

3) goldman sachs, which was short 52,000 contracts back in march, 2006 has now completely covered and actually gone long a nominal amount.

if anyone knows what will happen, it's goldman sachs.