Gold, has the bubble burst?

Is gold's leap backwards a tactical move, as Gaddafi would say, or is it a real turning point in the long gallop that has brought the yellow metal to grind record after record? Two days ago gold posted a record high of $1913.50 an ounce, and this morning it made lows of $1740 before recovering slightly. A 10% swing in 48 hours is not what one would expect from an asset that, according to gold enthusiasts, should be the 'yardstick of all things'. In truth, gold, rather than a bulwark against inflation (which is not there) had become a weather vane of fear, gaining positions when fears of recession and collapse gripped the markets, and retreating (not in good order) as soon as some optimism returned. The Sdpr Gold Trust - the gold ETF - had surpassed, in capitalization, the largest ETF on the stock markets - the Sdpr S&P500 Etf Trust - and this was for many detached observers the signal that the bubble was close to bursting.

http://www.bloomberg.com/news/2011-08-24/cash-gold-extends-biggest-drop-since-february-2010-as-cme-raises-margins.html