To a large extent where the markets go is predicated on the positions by funds in the markets.

The fact that we made a new high for the month in gold brought some new fund buying and short covering into market.

The reason they're jumping on board is because of the attractive returns that the commodity markets have seen over the last 2 or 3 years. If you go into a more sideways pattern those returns get a lot less attractive.

The market today was responding to the outlook with the increasing possibility we will see an interest-rate cut. And the day's recovery is reflecting the rebound in stocks.

Gold put in a pretty good performance. When the dollar has been strong, commodity prices have been weaker, and when the dollar has weakened there has been a rebound.

We've had a pretty sharp move higher and we've had another big increase in speculative length.