Acronym Day: IMF,G7,FSF,FOMC,GFMS

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In its 2007 survey, the group found that the interplay between investors and the jewelry sector had largely determined the course that prices took. During the first half of last year, western investment fell but gold remained supported mainly by jewelry demand, GFMS said. But investment was the key driver for prices from September onwards, as the credit crisis flared up globally."

Mr. Klapwijk cautioned that this latest correction in gold will not be the last one nor perhaps the deepest one, as the involvement of large speculators adds a new dimension to gold's ballgame.

Watch for maintenance of the $900 level, while closing above $915 would be even more beneficial. Dollar/Oil remain pivotal. On a final note. the man who saw the Dow and gold eventually crossing price paths, Richard Russell, issued a call for "an epic bull market in stocks" earlier this week. Now there's food for thought in light of all of the above...

Happy Trading.