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The gold markets rose during the previous week as the Federal Reserve extended its quantitative easing program. The idea of and "unlimited" MBS buying program got the markets rocking, and the US dollar selling off. This naturally benefited the gold markets, as we have shot straight up from the $1600 level over the last month. This was simply more use for that rally.
However, it should be noted that the $1800 level could prove to be relatively resistive. Nonetheless, we think that the level will eventually be broken to the upside, and as such we are more than interested in buying pullbacks at this point time. On a daily close above the $1800 level, we think that's this market runs directly to $1900, and then to the $2000 level. As for selling, we simply won't do it until we get below the $1500 level.