Gold,Still Wandering in a Trading range

Gold lovers seem to be a bit excited with recent action but our view is that this market is still wandering around in the range established in the fourth quarter of 2011.  The highs and lows of that period after the major highs were made, are 1809 and 1536 with a midpoint at 1672, not far from the current level of 1664.  The macro deflation forces will eventually prevail but dreams of QE3 and other Fed excursions continue to hold the market up for now.  At some point in the next six months we will be making a major short call.