Perhaps unsurprisingly, gold promptly made it back to $1210 early this past week and basically just stayed there. The pound showed some strength as the UK government got pieced together and the Euro seems to be stabilizing, despite the Fitch downgrade of Spain’s credit rating. Equities seem weak but exhausted, meaning there may be a short-term bounce into June.

But various analysts devoted to cycle theory are calling for severe equity declines in late June and then August. My feeling is if gold doesn’t promptly head for its projected $1350-1400 top, it might be safer to step to the sidelines after mid-June.