Gold

Here is a highly condensed hourly chart showing pit and electronic trading in August gold since its May top at 739. I last commented on gold here.

I have been expecting the break from the May top to halt, at least for a while, near the 2 1/8 multiple of the 252 low made in 1999. This is the 535 level. This morning gold made it to 546 and I think it started a three phase rally from there to 582 or so. Then I will be expecting a drop to 535 followed by a bigger rally, perhaps of $100 or so.