Yesterday, US CPI figures came in a little hotter than the market had discounted. I take the view that this is the sort of debate theologians are said to have had about how many angels could dance on a pinhead — a distraction from the real issues.

Gold was marked down by nearly $30, and silver by 40 cents or so. But then gold had been rising spectacularly, and speculators were in for the ride. As you can see from the chart, after its recent performance a reaction in the price was hardly surprising.