I think you have apples, oranges, grapes, bananas, etc. in your analysis. Simply put, the markets all went up on QE3 expectations and are now retracing, as those expectations wane. If gold fell from a level that was consistantly sustained at a certain level, it might be a different story, but it isn't. Don't over-analyze or mix fruits. Sometimes the wrong move is on the up side. That's the move you should have been questioning--not the correction in markets that had no legitimate reason to move up in the first place. Returning to earlier levels is a harbinger of nothing more than a change in sentiment regarding what to expect in jackson Hole.

Ron, it is these knee jerks that have allowed me to trade these fixed income markets quickly and profiably. I've seen more of these moves than all the 'young uns' that are reacting without reason and moving prices willy-nilly without honest justification. I'm actually surprised that with your experience and market participation you are being influenced by their inane reactions.