The volatility continues to shrink out of gold and gold stocks, preparing the way for a key breakout at any moment. We could pause a few more days or it could happen today. Resistance on the XAU is now 144. A gap up above this level will likely spur a day long rally to create the key breakout that will launch the next run in gold stocks. A close above 144 would do the same thing. Hold on to your gold stocks and enjoy the ride.

I think we're likely to rally ahead of the next Fed meeting. Yesterday two Fed governors came out talking about a pause in interest rates at the August 8th meeting. We should rally into that meeting and then have a quick dip or pause just like we've seen the past few days. We could see XAU 155-160 by August 9th.

Note - over the next few weeks I'm going to post some older classic articles from the old website in order to archive them here.