MarketWatch reports how sentiment influences gold’s short term markets after having US legislation pass the bill on the bail-out plan on Friday last week.

Take Friday, the day in which the much-vaunted Wall Street bailout legislation finally received Congressional approval. There is no reasonable doubt that this legislation will have significant long-term inflationary consequences.

And yet, guess what happened on Friday to gold bullion, perhaps the most sensitive of inflation hedges? Far from rising, it fell — by more than $11 per ounce.