Goldmau.com comment:

America has to wake up. The news regarding Merrill Lynch and re covered bonds, as well as the US-style rescue plans in Canada and the UK, are pushing gold higher and we may not see $800 gold again. Gold and silver will most definitely continue to be a safe haven in my opinion. I have been anticipating one final move by central bankers and finance ministers to depress precious metals, and the timing of that will likely come about the same time that oil prices gain maximum downside momentum. After that, it's onwards and upwards.

As to gold specifically, the 200d MA for $GOLD is about $885; which will be thoroughly tested, as it was the week ending June 15, with a cycle bottom possibly in the $850-$860 level before the price of gold soars again. The support found during the lows of Sept-Oct 2006 and July-Aug 2007 will likely be found again this year (June through October) as traders move capital out of mortgage-backed assets (REITs). Future highs, within maybe two or three years, will likely be in the $1500, $2000 or $2500 range.

To deny the world is in a financial crisis is to close one's eyes to the plummeting share prices of Financial stocks in the past year, and particularly in the past three months. In every financial crisis, traders turn to T-bills (observed by extremely low yields) and to precious metals. This crisis is, and will continue to be, no different.

Commentary courtesy David Cai, Goldmau.com analyst.