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The gold markets had a slightly positive week over the last five sessions, but remain within the consolidation area between $1540 and $1640. We are starting to see a little bit more upward pressure over time, and as such it does look like the gold markets will want to break out. However, we think that the real move won't come until the larger majority of traders are back from vacation which should be in the first week or two of September.
Once we get above the $1640 level, we see a move up to the $1700 level as very likely. If we can get above that, $1800 comes into play at that point in time. As for selling this market, we really don't want to and will consider it in till we break below the $1500 level on at least a daily close. If that level gives however, this would be a trend changing type of experience. We would become aggressively short at that point in time.