Difficult to write anything inspiring. Last week gold got its bounce into the mid $1,670's and today sold down to initial 'weak support" around $1,650. The dollar/euro will probably dictate short term trend. The euro is approaching 1.30, which if breached may create the catalyst for lower gold prices. A bounce off this level may see gold in the high $1,650's today. A bounce in equities has lent some support to the industrial complex. As more and more people(dealers) get depressed and call for the end of the market, the more enthusiastic I become. This will be a tough year to be in the business but unless you honestly believe that Western Governments have the stomach for what is necessary to get real growth, not financed window dressing, you have to assume further higher momentum is in the cards. I want to see a downward capitulation, $150-$200 in gold and $4 in silver to confirm my musings.
