IMHO gold may find a 380 support over the next few days. I think from looking at the gold chart that it will retrace slowly to about 360 before its next leg. It is this leg that may have the momentum to break 400. There is no doubt this is a ratcheting bull market in gold. The recent break of the 10 year high, higher than the pre Iraq war price is a very bullish signal. The fundamentals causing the last upward leg are intact. I believe apart from the actual trading in the gold and the gold futures market with shorting and short covering that the fundamentals relating to monetary policy will perpetuate a bull market. Central banks will not be selling gold they will be buying it to support their currencies. Russia and China stated this at the G7 meeting last week. China wil float their currency backed by GOLD. To an extentt the USD is losing its safe haven status as they print more money. They will buy gold and support the gold price as Fort Knox is what will support their currency through a higher gold price. Mining production has been ratcheted back over years and there is time lags as it is ratcheted up to bring on supply. BULL MARKET, short term retrace. IMHO
