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Goldman Sachs says they have closed their short on gold after it climbed above $1410.

For those of us that believe gold is heavily manipulated this may suggest those doing the manipulation are happy enough with their efforts and don't need or wish to drive gold any lower.
By taking gold too low (say to $1000 or $1200) they ran the risk of spooking investors into thinking the collapsing gold price signals deflation and deflation means a collapsing stock market. There were plenty of posts already talking about that with gold reaching its $1300 low.

Ignoring the manipulation argument, GS seems to believe that POG rising above $1410 was an important signal resulting in the closing of their shorts.

Either way may suggest we have seen the low for gold.
If so, ABU will make plenty of money with gold staying here or going higher. If gold goes lower, many producers will shut mines reducing supply and therefore supporting the POG.
I find it difficult to buy higher cost producers after the gold price take down despite my longer term views, but ABU with cash costs estimated around $500 and all in costs around $700 is in little danger and a much easier buy IMO.

What I like about ABU as mentioned before and it is showing it now is this;
Lower grade Buccaneer and other deposits are not currently significantly factored in to ABU sp (if at all).
This means no downside to the sp from lower gold affecting the valuation of these deposits, but the large upside leverage remains if POG does make new highs.
High grade OP means less leverage to lower gold prices compared to higher cost producers. So less of a fall in sp resulting from lower gold prices and we have seen this with recent falls in ABU less severe than in the higher cost producers.

Hopefully GS covering their shorts is a signal that we may soon see a decent bounce for gold.
Either way, ABU looks safe once they prove up cash costs around $500 (inc royalty) or even $600.
Trial mining starts in June. Getting close.

A couple that haven't dissapointed in their qtrlies are donig well today. PRU holding up again after a 5% gain yesterday. EVN up 5% today. ABU awaiting what should be an upbeat qtrly.