BY A SINGLE TRADING SESSION !!!!!!!!!!!!!
Although prices were pretty flat through the Indian trading session ( despite news of the AIG Bailout which came in about mid day IST), in the US trading session, Gold rose sharply as fears of further bankruptcies across global financial firms triggered a flight to safety!!!
I'm not sure how much short covering contributed to today's rally, but things are getting pretty serious. Panics of this magnitude are extremely dangerous, as solvent firms can get dragged down by the overleveraged collapsing ones.
The USD rally over the past week appears to have stalled, but I would not be surprised to see gold rally, even as the USD holds out for a while longer, as the selloff across various asset classes continues.Investment bank CEO's may blame the short sellers and try to calm panic stricken investors, but it appears that the overleveraged CDO, CDS mess is derailing the US economy at the moment.
Interesting times...........watch this space!