Given the increased correlation between base and precious metals over recent months, any further weakening in base metal prices would be a distinct drag on gold.

Certainly sentiment towards gold now remains positive, with the market ignoring the further drift lower in the oil price and the recent strength in the dollar,

rise in inflationary pressures caused by higher energy prices.

Wherever the numbers fall, they fall. I am hoping they fall in my direction. Seven votes brings to mind that every vote does count.

Sentiment towards gold has now turned markedly more bearish and further long liquidation looks likely, although the deterioration in sentiment has been so swift that a bear trap can not be ruled out.

This is partly as a result of the belief that any dollar strength will be temporary,