Gold Update

Spot gold holds at $684.30/oz, at the high of the day and up from an overnight low of $673.30.

Traders looked Thursday to buy dips around $676 (the July 2006 high/now seen as support), and this strategy proved wise.

The last Fibonacci retracement and swing targets come in around $690/$693. As long as gold holds above trough support at $657/$662, the uptrend remains in place.

COMEX open interest is running with the greater trend a run to $850 may be seen, The pattern of the last three years has been that following extreme position build up, profit taking eventually triggers a deeper correction, but thereafter, the secular uptrend kicks in with a vengeance.