Increasingly, the world is becoming more complex. I´m sure few would argue this point. Mankind´s propensity to collect and analyze numbers has no doubt contributed to this situation.

Gold had been in a nasty bear market since the mid-nineties and $300 had acted as a critical resistance level.

The dollar chart looks terrible and although the Plunge Protection Team may make a last ditch effort to keep it creaking along until the election, it looks doomed. If the dollar index breaks decisively below 87, it is likely to drop sharply.

China, which President Bush has called a “strategic competitor,” will see its demand for industrial energy more than double over the next 15 years.

The “Trade winds” blew away all memories of the summer “Doldrums” we had become so used to. Gold looked so strong, before falling back on the day when Japan and the States, ‘were closed’, last Monday. This was after the market saw only 94,000 jobs added last week in the States, as against an expected 150,000.

The “Marketwatch” for Monday called for a reaction in gold (and silver) this week. Not surprising really as it was overbought, at the top of a trend channel and beneath a zone of heavy resistance.