"Very much enjoying the service."

"In last night's video, I think you said that gold would have to fall below $1600 to jeopardise the very bullish outlook. As it is $70 below the current price, would you say a break below the 200day ma, were it to occur from roughly current levels, would be a warning sign? I want to ride the trend but remember all too well the volatility in precious metals!"

David Fuller's view Thanks for the feedback and a question likely to be of general interest to many subscribers.

What I actually said after listing a number of bull factors, was that "gold would have to fall below $1600 to question" the very bullish outlook.

Basically, in listening to the Audios, you will know that gold (weekly & daily) has done everything required up to this point, to demonstrate that it was in a support building / accumulation phase prior to a significant recovery and resumption of its overall upward trend in 2013.

As I see it, the volatility which often favoured bears occurred during what I described as the first-half, distribution phase of this lengthy medium-term corrective period. Following the May trough which tested the 2011 lows and held, I have felt that gold was demonstrating that it had moved onto the initially gradual recovery phase in line with seasonal factors.

I got my tactics wrong in the early stages of the support building process because in a triumph of hope over experience, I was holding out for an earlier completion of the ranging phase when I should have been doing some Baby Steps buy-low-sell-high range trading. One could still use that tactic with part of a long position but I think gold has now embarked on a recovery phase more suitable for trend running for the major portion of one's position. In this case, it might be better to have looser rather than tighter stops, at least until the price accelerates higher.

We all want to protect profits although not at the cost of coming out on a minor reaction relative to the uptrend that should now be forming in gold. Personally, I would probably be buying on a move back towards the MA, as we are only three days into the breakout phase.