"I was just looking at the gold chart as I am sure people make a chart to fit what they think, much like statistics, on purpose or sub consciously.

"Anyway, did you notice that if you draw a trend line from 1st July to 13th and carry it up to now and put the bottom channel at the low of 4th aug, we are still in that channel, although at the top end."

David Fuller's view Thanks for your thoughts.

Interpretations are subjective although there is a reality check aspect to price action which makes it difficult to rationalise with analytical credibility.

I had not noticed the channel you mention but interpret it as another indication that gold was temporarily overextended, although not to mania proportions.

Eoin mentioned gold's key day reversal in Comment yesterday and I added in the Audio that platinum and silver had also seen downside keys. Today's follow through confirms that peaks of at least near-term significance have been seen.

Apparently, there were rumours yesterday that the CME might raise margin requirements on gold once again, as it did on 10th August. This would certainly have happened if the price had continued to accelerate higher but another hike now appears unnecessary at this time.

Gold all but equalled its two previous main previous overextensions of 2006 and 2008, and in two days it has seen its biggest reaction in over two years. A weekly key reversal, should it occur over the next two days, would increase the possibility of a multi-month high and ranging mean reversion towards the rising 200-day MA.

Silver and platinum were less overstretched but are also susceptible to an additional consolidation of recent gains. Palladium (weekly & daily) has lagged recently and its current range is dominated by downward dynamics. I see little chance of an upward break in the near term.