Let's Take a Look at Gold

Gold pulled back sharply this morning. Is this the pullback we've been waiting for ... a consolidation of the big gains after its recent upside breakout? Marketwatch thought so...

SAN FRANCISCO (MarketWatch) -- Gold futures fell as much as $7 an ounce Wednesday morning, as traders mulled mid-term election results - a resounding victory for the Democratic Party -- by locking in some of the metal's recent gains.

Ah, so it's those darned Democrats at fault, eh? Ha-ha! Well, maybe not...

I have to say that gold is showing suprising strength here -- I was expecting a pullback after the big run-up the metal has had recently. A consolidation is normal and necessary for any bull run. But gold looks very strong. What is the metal trying to tell us?

Check out my new gold and energy blog at MoneyAndMarkets.com