Watch Gold!

Gold has rallied hard the last three weeks, bringing it up against a downtrend that has held it in place since the highs in early 2006 -- well over a year.
It would not be surprising to see gold pull back here. On the other hand, if it can push above the downtrend, we have the chance for a really massive breakout -- one that could bring us over $800 an ounce very quickly.

What would be the fundamental driver for such a move? The long-term decline in in the US dollar hasn't really been reflected in gold yet. Maybe those old pigeons will come home to roost.

Or it could be anything, really. And maybe we'll see gold bang its head on overhead resistance and pull back to support. This will be very interesting -- watch it closely.

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