Tuesday trading in gold turned into a pretty big bear raid. As I mentioned briefly in my rant yesterday…starting shortly after Sydney opened on Tuesday morning…someone bombed the bullion market with a big sell order. The word ‘big’ is relative in this case. In the extremely thin trading that characterizes Far East gold and silver activity…a 1,000 contract sell order would hammer the market…and that’s pretty much what happened in gold. Ditto for silver.

Wednesday’s action in the gold market world-wide was nothing short of a yawner from one end to the other. Ditto for silver. Volume was very low as well…so I wouldn’t read a thing into yesterday’s price action.

In the currency market, the dollar was slightly higher against the euro. Late Wednesday, the euro was trading at $1.27 vs. $1.271 on Tuesday.

The Australian dollar is as strong as it’s been since the beginning of the commodities boom. It takes just one dollar and five Australian cents to buy the greenback.