Just saw $942on NYMEX & $944 on MF Global The fed`s involvement on long treasury is good news for gold and i stick to my opinion that it`s in reaction to China moving into short term bond and their worries about their stakes both in US long term bonds as well as other equities they hold in US.

Not to say that it`s not also driven by other national reasons and other bond holders, but it`s a major step in reassuring bond holders on US intent on supporting their assets and not letting them lose their value.

It`s much to early in this crisis for US government to let bond holders down. That time will come a couple of years down the road probably, when they can no longer afford paying the debts they`re building at a frightening pace now.

`Till then gold shall thrive!