It stikes me as funny how this IMF news has been written to imply, as if by April they will sell 100 million oz of gold in an instant. What I got from the report, not the reporters opinion on the information, was the IMF has approved the ability to sell gold as they need to in order to support their ability to loan money.

The GLD trades 1 million oz a day so if this was sold through GLD only it would be sold out in 100 days. The irony is there is many venues to sell gold than GLD. Lets say there are 5 other ETFs that trade that would be likely be 2 to 5 million a day traded. Then the London physical markets.

Maybe the gold will covertly find its way into Fort Knox before its discovered that Fort Knox doesn't have any gold. Regardless, it is the kind of noise that scares people on a Monday morning.

Although gold did close lower on Monday than on friday this week. It did put in a nice finish by friday well above Mondays close.

Next week; Gold is set up for a nice break out to test resistance at the 940 level. This is the point where fear starts to kick in for most who listen to the top callers so this may slow the advace for the week and we could see some consolidation in this range 880 to 940. I say this because of the IMF news. With out the news I would have said it is going to test the 940 level and bounce around 900 to 940.

One thing is for sure this news will display the real psychology of the gold market by the end of the week.

Golds long trend is at the 860 level so "they" have some work cut out to break the trend. My personal gold channel has a range of 855 to 970 with the mid point at 905. That is at Fridays close. It ranges back to the breakout in Sept.

Here is to an interesting week. Also, waiting to be a grandpa. My daughter is at the due date point, which happen to be a mid piont + or - 2 weeks. well we've past the -2 weeks.

GLTA

Reg Mills