As for gold, we will shock our clients around the world as

we chose once again to turn bullish of the yellow metal.

We had hoped to see gold trade down to $820 or so as

the late long who've been holding to their position. hoping

to be bailed out, are not and are left to liquidate into

panic. However, it now appears that the drive downward

through $850 earlier this month was sufficient and that

order has been restored. The recent gold sales from the

signatories to the Washington Agreement have been

uncommonly small and that has tended to raise our

bullish antennae accordingly. Toss into that the fact that

the dollar is beginning to weaken once again, and toss in

that the future notion that the general commodities

market indices are still trending higher and we have the

ammunition needed to rejoin the bullish hunt.

Thus, we'll buy one unit of gold this morning upon receipt

of this commentary, and on a close above $890... or if

spot gold should trade above $890 for an hour or two to

prove the merit of its move... we'll add a second unit. .