Dear Friends,

I have never had a problem saying exactly what I feel about markets.

Most people are afraid to climb out on a market limb without a caveat to save them. The caveat of popularity is if this happens, do this, and if that happens, do that. That caveat makes the speaker always right even when wrong.

I know the major minds in gold so it is suffice to say I have been to the mountain and returned with great support for my firm opinion.

Giving respect to Dan?s comment on technical damage, allow me present my view that there is NO damage to the underlying long term BULL TREND, nor will there be.

Major support is at Angel $887.50 which does not need to be tested.

The low we touched was also a major level of support, to the penny.

Gold is going to $1650. As I see, it that is totally intact. Those writers who so indignantly bash gold are SIMPLY WRONG.

It will take a few weeks, not a month, to rebuild the base for gold. Thereafter we will once again assault $1000. A return to $1000 without chopping sideways first would again be blunted.

That rebuilding will take place.

The range in gold from $1033 to the low $900?s is not, nor is any other one day move, unusual in gold.

There were up and down moves in the $300 range in the late 70s, sometimes netting a $150 change in a trading day. This is gold and will continue to be. As we move forward to 2009 the volatility will only increase.

Sincerely,
Jim