Fundamentals or Intervention?
There is absolutely no logical or fundamental explanation I can think of for the massive dollar rally of late and the brutal crushing seen in both Gold and Silver prices.
Take today's news as an example:
- Much hotter than expected CPI reading - sharpest increase since 1991
- News that President Musharraf of Pakistan would step down
- No improvements to the Russian/Georgia situation - w/new fears of ethnic cleansing
- Housing situation getting worse - US foreclosure filings surged 55 percent
Each one of the issues above (on it's own) should have been a significant positive for precious metals, but no -- gold fell > $20 in the US market and another $10 thus far in Asian markets (Silver saw it much worse - as a percentage).
Call me a nut job, but this certainly doesn't pass the common sense test and reeks of massive intervention.
Highly respected James Turk felt the same way on his Aug 7th article: Mystery Solved
Same with Ned Schmidt and his Aug 12: Gold Thoughts