Finally, after weeks of gold following the stock market up and down, there is a break. Finally gold goes higher as the stock market plunges. Gold today closes about $900 per ounce, and the stock market breaks below $9000 (The Dow Jones Industrial).
The break signals the true panic in the markets. As the financial markets hit bottom, they will rebound, but not before taking a few more big names with them. This bottom will mark the actual return to confidence. Expect 6-8 weeks of more down movement.
Also, it appears the late-in-the-day-jump in the price of gold is related to Citibank walking away from negociations with Wells Fargo over Wachovia.
NOTE: if GE tanks tommorrow (2008/10/10), we will see another groundhog day. This means gold will be up and the market down. If GE hits the mark, there will be buying. GE reports before the market opens.