"He says Gold won't do "WHAT IT'S SUPPOSED TO" and he finally has to get on the right side of the market and to go along (my comment) RELUCTANTLY with what it's doing. An example of someone TELLING MR. MARKET what it's supposed to do. You gotta love it. This seems to be an instant where the "usually right" Commercials have huge short positions. Stay tuned. GOLD looks powerful. In an interview on the McElleny report, Seasoned Veteran Market observer, Ian mcAvity suggests that once through $1800 it's on to $1900 and then "Katy Bar the Door" $2200-2300 quite possible by year end. As Stephanie Pomboy has often said- "Got Gold"??????????"

David Fuller's view Thanks for the info. I remain very bullish on gold's medium-term outlook, as you know, mainly due to all the QE and record low interest rates but let's take it one step at a time, monitoring trend consistency all the way. Gold (shown above) now needs to break and hold above $1800 to bring in more of the people waiting (hoping) for a pullback.

The biggest risk factor for gold, in my opinion, is not the Commercials but correlation with the S&P 500 Index (weekly & daily). It remains firm, albeit in a range but the next correction is likely to weigh on gold temporarily. A decline beneath 1430 by the S&P would break the progression of higher reaction lows evident since early June. Such a setback would most likely take gold with it.