Remember last week’s Slogpost suggesting that Gold would go through $1300? Well, it’s now struggling to hold $1200.

And yet and yet… mining stocks do not seem to be entirely worried….as in, their index is up 50cUS on the day.

So, if the miners tend to lead the price of gold (as they do) then – as my New Mexican friend so delicately puts it, “Who the f**k knows where it’s going from here?”

I don’t know the answer to that one either; but this much I do know: this is the biggest divergence we’ve seen between genuine fundamentals and counterfeit printerventionists to date.

Consider: when the stock markets are going up to record levels, and gold is going down, then in the real world of naturally evolving markets, you must surely expect that – in the pipeline – there are at least thirty signs that breakthroughs in immortality pharmaceuticals, highly intelligent search engines, a process for converting well-water into wine, clean car emissions, zero-cost electricity generation, and the secret of transmuting politicians into something genuinely useful are about to come on stream.

But signs of such developments are there none. So before too long, there must be a collision between reality and rigging. After all, from here gold could go to $1035 and then plumb three figures. It is now holding at $1204.

This departure from reality is unprecedented. But if nothing else, it does show how (a) desperate and (b) broke the central banks are to go quite so crazy on the capping thing.

The exponential acceleration towards lemming cliffs continues.

Earlier at The Slog: The one-legged stool formerly known as globalism