Good morning. My name is Paddy Osborn and today we're going to talk about gold.

So let's have a look at the gold price. I think everyone knows that the gold price has been in a very strong uptrend for many years and it hit its all-time high again, a new all-time high in mid-June up at the level of $1,275ish. We've seen a pullback through July and then late July and into August we saw another good rally back up towards the all-time highs. It has been rejected just for the moment and end of last week it came off these highs around $1,260, but the long, the medium-term trends are certainly still on the upward direction.

Of course, gold is a commodity that people will buy into when they're a little bit nervous about anything else, so if stocks do well, obviously I would expect gold to pullback. But even though in the short-term I think stocks might do okay. I think, in the longer term the equity markets still have a little bit of downside in them, so I think the gold is still a pretty solid bet.

One other thing to notice from a technical perspective is to look at different studies and different aspects of the technicals that have worked well in the past. In the recent past, what we've seen, all the major turning points. So we had the high here in June. There was a distinct turning point obviously and then we had a little downtrend for about a month and then we had a definite low and another uptrend for a month and a bit.

So were any of these turning points forecast? What I would look back and have a look at is even though this was not in the oversold zone, the energy in the market started decreasing on the stochastic before, so we have some divergence here, some bearish divergence warning of this breakout, then the market started going down. As the market made lower lows we had some positive divergence, some bullish divergence here from the stochastic which prompted the move back up and now of course we've had this drifting up. It went up quite sharply. It's still going up, but at a lesser rate, but the market is still going higher and we've got the stochastic indicating that maybe the energy is starting to run out again. So it's not a big surprise to see the market hesitating at this all-time high.

I think ultimately in three to six months' time, if not before, this high will be taken out and gold is a long-term good thing to be holding - a long position. But I think in the meantime it's related to the stock markets, but I think there could be a little pullback below this $1,240 level in the shorter term, by which I mean two to three weeks before we get a move higher again.

I would say certainly this downward move could extend as low as maybe $1,200, I think, unless we see some ridiculous strength in the stock market. But I think there will be a little pullback, but in the longer term, certainly I would see gold as a good investment.

So buy gold on dips probably back towards the $1,200 if you can, looking for it to break above. If it breaks above the all-time high, I would see a burst of buying energy there and I would say get in as quick as you can for a significant move higher.

Okay, that's what I think of gold. Thanks very much for listening and I hope you found it useful. Thanks.