Thanks SleepingWolf,I've time for Maund's technical analysis...

Thanks SleepingWolf,

I've time for Maund's technical analysis because it isn't tainted by a fundamental view of gold, one way or the other.

This comment about COT is interesting:

"The latest COT chart shows that the Commercial short overhang, which has helped to force gold lower over many weeks, is now easing dramatically, opening the door to renewed advance... As usual Big Money appears to be positioning itself to be the winning team".

My comments: Looking back through the data, the plunge in this overhang of 31,000 contracts last week was the biggest weekly fall since August 15th 2008... when a monstrous 83,000 shorts were covered as gold fell from $853 to $787.

In the past 3 weeks the commercials have covered an impressive 60k shorts. While we may see bullion go lower from here, as it did in the weeks after August 08, this tells me the banksters see higher gold prices in 2010.

So have we seen bottom or is a lower low coming down the track? Pierre Lassonde interviewed on the weekend (KingWorldNews) sees a 50/50 chance of $US 950 in June/July.

Rowingboat