Gold prices are cratering. The precious metals market smells Bernanke capitulation, I think. The silly paper longs on various Yahoo boards keep saying that it's because the economy is great and fear is gone -- so everyone should take money from gold and invest in eg ANF.
Is it Bernanke capitulating or the rest of the members. The text seems to infer a real fear that Bernanke is losing control. "Several members" mentioned the High Yield Bond Bubble. Bernanke doesn't seem to understand bubbles or markets. Remember he missed the housing bubble by a country mile.
But there are several HUGE bubbles nobody is talking about, Even though the S&P hasn't crossed it's 1999 high, the Russel 2000 is WAY above. Small caps are WAY WAY overbought. Another is transports. UP earnings are supposed to go up by HALF their projected sales increase even though they have a 20% margin.
My take on the gold take down isn't that there sellers so much as there's a break in the CME. This morning there were HUGE sell orders, so large they were causing shut downs. Both oil and old dropped hard. Oil CANNOT drop. If the price of oil drops below $80, there will be massive bankruptcy's in the junior oil sector.