We are still in an upward trend. The fundamentals are still in place but I think we are having a bit of a shake-out.

At the moment the mood is still jubilant.

People will be eyeing $450 as the target. It may not be today. It will be very quiet in the States.

There was a significant drive in Japan in recent weeks. People are very happy to be jumping on the bandwagon and basically riding the thing up.

We've seen gold break the correlation with the dollar in recent times. We saw gold strengthening even though the U.S. dollar was strengthening.

There's some profit-taking now, but look at where we are. It's broken $520, the target we had yesterday ... looks like $525 is the next target.

There's definitely more buying in gold, obviously on inflationary fears. The funds have continued to buy.

It's dizzy high, and we're looking at a very overbought market. We're looking for a correction. It has to come at some point. However, given where oil is, it may well give some support on the downside.

If we sustain this break for the duration of the day, then I think we will be looking to test $495 again.