Voltalia Ord Shs VLTAF

POG?

[Mick16]

Spanish bailout of $50B gets go ahead and gold tanks??  Something is not adding up.  Anybody?

[gold_diggers1]

Mick16, Spainish bailout of $50B more Euro money..... which means US$ is more valuable and POG is priced in US$, hence the drop in the POG...... . GLTA  

[Mick16]

Thanks GD1, I just thought the more money in circulation in general was good for gold, but I was wrong :-(

[gold_diggers1]

Mick16, that is only a speculation on my part.   I can see your point too which is more money bailout, regardless in what currency, makes gold more valuable since the amount of money out there does not decrease with more printing, it only increases, be it USD, Euro, British Pounds etc...   But I think the perception is that people now will flock to the USD since Euro is

[VentureTrader1]

Or else it's because the commercial short:long ratio is 2:1, which means there are is a relatively large speculative long position.  Yesterday being options expiry on the Comex, and with gold having stayed relatively strong into options expiry, a bunch of long, in-the-money options would have converted to futures positions.  So having a big drop today puts huge margin pressure on