Indeed, the “action” of the past twenty four hours or so has us

more positive, not less, positive on the gold market.

Gold and the other precious metals turned sharply

higher yesterday morning here in the US, moving

almost in a straight line from $838 to $863 on little if ani

news. Crude oil was weak; the grains were weak at the

time [Ed. Note: they are sharply higher now.], the dollar

was trading quietly… but of a sudden, gold spiked

higher. The feared selling of gold on the changes in

the weightings of the various long-only commodity

funds was not as material as had been feared, and

most, if not all, of that selling is now behind us, if we

are to believe those directly involved in these changes.

To that end, we are reasonably impressed by what has

taken place in gold since yesterday. Just as there was

a massive seller of consequence late last week and

earlier this at or near $880-$885, there was an equally

impressive buyer at the $835-$840 level yesterday and

the day before. From a purely technical perspective,

and from a perspective of money management...for we

shall never add to a losing position, and shall add to a

trade when and only when we are profitable… it shall

take a move upward through $870 to have our interest

sufficiently enough to add to our trade. We’ve no idea if

that shall come today, or Monday or if it shall come at

all; however, when it does, almost certainly we’ll act to

increase our exposure