Crazy Gold - Standing tall amidst global crisis

Suddenly, the markets seem collapsing under its feet. 7 days of gain in Nifty was undone in 2 trading days. The world markets aren't faring any better. Dow collapsed to its Oct lows and is on the verge of breaking it. Only time will matter. Maybe now, maybe after a minor bounce. For our markets, we are just around the supports of 2725-30 in spot. Below this, there can be a nosedive towards 2550 and then Oct intraday lows. The trend is definitely down. Banks are suffering the most; maybe the markets know something thats going to be unearthed in this sector soon. My personal feeling is that all major banks are going to take a hit in their balance sheets due to rising NPAs in the coming quarter.

On the contrary, there has been an absolute crazy gold rush. CBOE futures are trading at 970 dollars. Indian markets have seen it past 15k. Traders have started hiding their face in gold in view of equity downturn. But I am rather cautious on this front. I guess gold will correct itself soon and bring down the equity markets along with it. I dont know how many people are actually buying gold bars at this hefty price. Its trading at +3 standard deviations and bound to correct to its mean. Lets see what lies ahead. After all, market is supreme....