Before US Markets Open

It is difficult to believe that this correction would be so drastic. A correction was certainly due, but WOW! Looking at the 1-Year chart on gold at Kitco.com, it is easily seen that the long term bull market is still intact. For the last twenty four hours, gold hit a high of $660.90 last night at 10:21 (NY). The low was $636.30 this morning at 2:52. The current price $650.40. The low was a spike down from volatility around $640. A blessing of the current correction is that the volume has not been that great.

Likely, we will see an opening in the US near the current level which is down from Friday's close.

I still believe we have a long way to go in the bull market, but it may take some time to get back up into the lofty levels of the last few weeks. Several analyst are seeing $715 as resistance. The run up was rather extreme. However, there is much more news on gold in the general press and more folks are beginning to look at gold. We should reach a volume of buying in the near future.

India which is generally a heavy buyer of gold is experiencing the lowest price since before Christmas. Also, the China news carries thoughts on increasing China's gold reserves.

Russia is reported to begin trading on it own exchange Oil and other Commodities in rubles on June 8th. This will put some additional downward pressure on the dollar.

Remember only the Lord knows these things for certain. We make only "educated" guesses and depend upon Him for results.

Best to each, Doug