RE: RE: RE: RE: metalsGold dropped because China went ahead and bought Portuguese bonds that just matured. Otherwise, Portugal probably would have defaulted, and gold would have moved up $100 to $200. This way, Yuan maintains value in the Euro, which otherwise would have risen and would have eroded their trade surplus with Europe. But China's massive foreign reserves of nearly $3 trillion is a pittance compared to the world bond market currently valued at about $90 trillion. And virtually all bond holders in the know are trying to get to the exits right now. China only delayed the inevitable by a few months at best.