Commodities bounce

Gold avoided the ignominy of falling below $800 today and bounced back over $20 to close at $837. Maybe Armageddon is not around the corner for Gold after all. The extent of Monday and Tuesday's decline caught me off guard and I wondered if I had missed the key trends for the week. Fortunately, more bad financial news for US banks put pressure on the dollar and Gold and Oil responded in kind with healthy gains. I'm optimistic that this trend will not be significantly reversed in the next few days of trading. Oil climbed back to $116 today and is poised to hit $120. I think Gold is still the weakest of the US dollar plays. Getting back to $850 is still doable in the next few days but it's not certain.