*With all the short-term gold bearish hysteria, the correction is a blip thus far when viewing the big picture.
*It was apparent to me last week that The Gold Cartel and trade, such as hedged gold producers, were in there buying what they could in the low $430’s. As a result of today’s price advance, they are likely to up their buy points to the $435 level, should we retreat back there again. They were paying up today also.
*On Saturday I chatted with my esteemed colleague Chris Powell and said if gold corrects to $400 like so many think and then goes back up, I am "out of here." Still feel that way. What I meant by that is I will not give my opinions about market direction in future MIDAS commentary. If I could be that wrong, then what I have to offer would be, and still could be, useless.
The reason for the rant is this. At $450+ I was still bullish, as it seemed to me the short-term correction camp had way too much company. Markets don’t accommodate the herd. Yet, the dollar popped sharply, GLD did their thing at the same time, and gold dropped $20. This has the correction camp congratulating themselves.
However, wait a minute, MOST of the correction camp was bearish with gold trading between $432 and $434. We know that is so because almost all the pundits at the New Orleans Investment Conference were calling for one a month ago. The gold price is now $4 to $7 HIGHER than where nearly all the long-term bulls called for this correction. Maybe they will be right in the end. Yet, for the moment, they are offside.