Gold $1674.20 UP $14.50

We've seen two major buy orders hit the this market today and two days ago which have taken the new shorts by surprise. Gold is gaining technical momentum by trading above its 250 day move average line at 1663. This continuing ascending line has exhibited the support area IMO for aggressive buying in the past few years. Basically on the weekly chart, it is the bottom of its upward trading range.

I expect the $1690 to $1700 range to be difficult for gold to pass on this push. If for any reason $1700 gets bettered, this market will attract additional buyers who should flow into our sector and stir things up quit a bit for the shorts. Of course without public participation in our group as gold, hopefully, continues to advance it will be difficult to turn the tide in our favor with so much paper and borrowed securities being supplied as the hedge hedge funds maintain their long gold/short on the shares spread.

Bob Chapman stated yesterday that the public use to be involved in 50% of all trades but today they only represent 10%. Bob said the trading today is manipulative by the big money interests as they mainly trade with each other.

I would like to mention that China's February surge in gold buying as was mentioned earlier is viewed as significant. China knows the financial health of western Europe is collapsing and is beyond repair aside from what all these talking heads across the pond would have us believe otherwise. The unknown factor is what these cornered rats will do next in twisting people's minds away from the only value maintaining safe currency, gold.

Stay strong.