Despite an affirmation of the validity of current monetary policy when brought before his partners-in-crime masters by FOMC Chairman Ben Bernanke and the subsequent pop in Gold prices, Gold was brought back down over 4 days of relentless selling to end the week exactly where it began, $1579 per ounce.  Now, given the last few weeks worth of pressure that Gold has been under I would take that as a victory.  But, objectively, there is so much bearishness in this market and, coupled with the renewed fear trade over the fate of the Euro thanks to the Italian Election results on Monday, that one has to be bearish short-term on Gold until something positive from a technical perspective occurs.

I said on Tuesday that the $1620 level was important and it absolutely was, turning into a wall that would not be breached and gave voice to the momentum-chasing monkeys that occupy most hedge funds today.  This is pure technical selling and it will continue until a technical signal of real strength is received.  I am out of ideas as to when that will take place. And with a new month upon us we begin it in a very bearish posture which can easily see a move to re-test the $1525 area.  That said, if the $1550 short-term bottom holds through early March without a re-test then that would be the kind of strong technical signal to give bulls the fortitude to defend higher prices.  This is what was setting up in late January which was defended successfully by the central banks and here we are today.

Today created another opportunity to accumulate at prices that, given the circumstances, should be considered thievery.