Sentiment towards bullion remains overwhelmingly bullish and further short-term gains are likely. A move up towards the February 1983 high of $509 an ounce seems the obvious target.

Markets looked poised for further gains. Expect volatility in the short-term.

While sentiment is so strong, it would be foolish to fight the trend in prices.

In the short-term, sentiment [towards the dollar] is probably quite negative.

Never compromise your principles, even if it leads to difficulties in the short term.

What seems more likely is that the markets, having enjoyed an almost uninterrupted rally since last summer, have been looking for an excuse to take a breather and consolidate the gains.