KEY SUPPORT BROKEN--GOLD FINISHES HIGHER

Note double bottom on point & figure chart bearish pattern August 1





For the month of July Gold Bug index and Oil Services are up.
Bear Stearns CFO Sam Molinaro called the troubles in the credit market the worst he'd seen in 22 years.
The Dow was down 284.27 to 13179.06.
Sept. crude was down 1.38 to 75.48.
Transports down 191.79 to 4872.57.

Aug. gold was up 7.80 to 684.40. Sept. silver up 16 to 13.15.
Gold/XAU Ratio 4.63 I still am looking for new lows for spot gold and $HUI in mid to late August--however if gold breaks $700 and broad market is stable I will buy a basket of gold stocks. My watch list includes TGB, RNO, KGC,RGLD, MDG, GG, ROY, AEM, GRS, SBB.V, FR.V, MGN, MFN, STM.V