The gold price is now flirting with critical support levels ($532-$535), and it faces a possible short- to medium-term trough -- one that could even breach the $500 level.

The gold price is now flirting with critical support levels ($532-$535), and it faces a possible short- to medium-term trough – one that could even breach the $500 level.

We're flirting with key technical support levels. Markets rally but then can't sustain. There's continued nervousness about accounting and corporate profits, but no catalyst to move us out of it.

The huge pool of global liquidity out there has not found a better place to rush into, and is enchanted with gold and its prospects.

There's been a flow of funds from U.S. bonds to gold, and that is providing support for the market.

Clearly there is a momentum towards gold at work. It is flirting with $500 and the indications are it should go through it. That will be a worldwide headline and will attract more buyers.