Gold Flying Upwards - After China's CB Comments

Gold is flying in the wake of China CB head Zhou's comments about diversifying reserves into other instruments. Spot gold trades at $632.70/oz at the day's high and up from an o/n low of $615.75. Wed'stumble below $617/$618 prompted many speculative accounts to exit their longs.

Now, with gold breaking above recent highs at $628/$629, specs may be scrambling once again - this time to get back into a long. The next topside target is the Sept highs around $640.00