Reflections on a flash crash

Precious metals suffered a sudden reversal starting last Friday, coinciding with reports of sudden retail buying from around the world. But there is a positive side to these developments.

This article is less about the evil doings of market manipulators and whether they are out to get the gold and silver bugs, and more about what is actually happening in the gold/currency relationship. It was an action that tends to occur to a market which becomes wildly overbought, which an examination of the entrails is not the situation in precious metals. From a market point of view, therefore we can regard it as a temporary setback.