Gold hung in at $900 until London opened, then declined modestly until about an hour into the New York session, after which it was hammered, falling as low as $873 before making a small comeback during the Globex to finish at $877.00/oz., down $22.90. Overnight, gold has been flat.

All last week I expected the bullion banks to pull the pin on both gold and silver because of options expiry yesterday.

Gold held steady from the far East through London trading on Tuesday, but once the NYMEX opened it fell like a stone, and a modest rally off of $905 was snuffed out during the Globex, as it finished at $904.40/oz., down $19.80 from Friday. Overnight, gold has continued to decline.

Gold didn’t do a lot on Friday, but silver definitely had a mind of its own. It rose throughout the Far East and Europe, but ran into a not-for-profit seller at 9:00 a.m. New York time.

Gold fell to $915 in Hong Kong, but that would prove to be the low for the day, as it edged steadily higher to the mid-point of the NYMEX on Friday, nearly touching $929 before easing into a close on the Globex at $924.20/oz., up $3.80. For the week, gold added 2.5%.

Gold peaked at $935 in Hong Kong, and declined from there pretty steadily, right through the NYMEX session on Thursday, before edging a bit higher in the Globex and finishing at $920.40/oz., down $11.40. Overnight, gold has edged higher.

It is always impolite to ask a lady her age. But the oil bull market is certainly no lady, besides which, we know she is about ten years old.

Gold was dead flat straight through the overseas markets yesterday, but once the NYMEX opened it was off to the races, shooting as high as $887 before selling off about $8 at the noon hour, but then catching a second wind in the Globex and pushing to a finish at $881.00, up $16.60.

The price of oil, now nearing $130 a barrel, is being driven up by subsidies on cheap petrol and diesel, according to a report by Reuters.

China, India and other nations that subsidize cheap petrol and diesel may be even less willing to raise prices than they were six months ago, aiding crude’s ascent toward $130 even as demand deteriorates elsewhere.

While Indonesia appears set to raise prices as soon as this week, the world’s fastest-growing oil users show little inclination to tackle their subsidy schemes, as fighting food-fueled inflation has become their top priority.

Gold was tightly rangebound from the overseas markets straight through the NYMEX and Globex sessions on Wednesday, bouncing between $860 and $870, and finishing at $864.40, down $1.30.