Relax

What a fascinating day in the Gold Market. The Dollar should have gone up on today's economic data, but it went down. And the short squeeze in Gold was on! Consolidation, consolidation, consolidation. Gold sold off hard in the aftermarket today as the stock markets began to realize there might NOT be another Fed cut this month. The Dollar caught another bid, and remains poised for a bit of a bear market rally. Fridays Retail Sales numbers and the PPI numbers for September have the potential to kick start the Dollars heart.

This market right now is dangerous for both camps. That's why I continue to sit on the sidelines and await an "opportunity" to buy when the "sale" signs pop up. 743 Gold is important. A move below there could take us back to 730. Any move back below 730 now should probably cause many Bulls to step aside, and let the bears have the market for a spell. 727 and 722 have served as strong support for Gold. The next few trading days should be very interesting indeed.

Silver is along for the ride. Support begins at 13.60. Then 13.52 and 13.43. Lose that and we go back to 13.15.

I continue to believe that a move back to the 50 day moving average for both is a possibility before we move substantially higher. But as "time" passes, the odds of that happening lessen. Economic data, and it's effect on Dollar sentiment, will play a big roll in what transpires over the next week or two.

Oil. Nobody complains about the price of Oil anymore. Is $80+ Oil and $2.75 gas now considered normal, acceptable?