Gold Update

Today's price high in gold came close to the key $1,700 per ounce, a Line-in-the-Sand for now, a level that will be strongly defended by the short-sellers and it is also the level where many longs will take some profit. Hence as gold price come closer to $1,700 level there will be a lot of selling coming into the market.

Whether or not that selling will cause a large pullback in gold price only time will tell. From a very short term technical perspective, a clear and sustained break above $1,680 could cause many short-sellers to capitulate and cover, causing a major spike in gold price. Without a clear and sustained break above we could see a lot of selling coming into the gold market int he short-term.

In the long term however, gold will continue to go higher as the current monetary system get closer and closer to its end game, a monetary collapse which will usher in a new global monetary system that would be back by gold and silver.