Gold Update

As long as the precious metal holds above $676, the July 2006 high - now considered formidable support, the market is geared up for a move towards psychological resistance at $700 and then the May high at $730.00.

Extended positioning suggest that a deep and unforecastable correction in all four precious metals is likely at some point down the road - forecasting the timing of this remains impossible.

Longs appear comfortable with their positions, as evidenced by the rapid-paced recovery in the precious metal in recent sessions.