bill murphy of gata thinks we will see higher gold prices ahead without a significant correction:

Will the US Government and Gold Cartel bomb the price, giving us a significant correction? Can they? My bet is they can’t at these levels because of the short squeeze. There have been buyers waiting in the wings on all dips … competing against each other, WHILE shorts try to cover at the same time. In addition, The Gold Cartel continues to interfere in the market with their 2% Rule capping, etc. Thus, they continue to thwart any kind of blow off which could lead to a short term top. Obviously, I could be wrong, but I think The Gold Cartel has lost control of the gold market and we are going to need much higher prices before we get a significant correction. At some point ahead, sticker shock will set in and the buyers will back away and the price will get hammered. But, I don’t see any sign we are close to that point yet. The $50 price drop last Friday and subsequent comeback cleaned out the market, setting it up for further advances.

Gold, and even silver, closed well. Attempts to break each market down failed with gold closing mid-range for the day and silver coming back 12 cents at the end of the day. It had been trading lower for the Comex session.