GOLD REPORT

Gold looks set to test the next support level of $845 to $850, he said in a note to clients.
"As expected, gold has once again experienced weakness in the summer doldrums, but a seasonal low is likely in the coming days, and the length of the consolidation since March should see a very sharp rally in gold's favored autumn months," said O'Byrne.
"Given [that] the financial and economic news has been as bad [as] if not worse than that out of the euro zone, the dollar rally is likely to be another dead-cat bounce," he warned. Thursday's U.S. data was "not encouraging with July sales and jobless numbers both disappointing."
So further dollar weakness is more than likely in the coming months, O'Byrne predicted, as the U.S. government "looks set to engage in a series of massive bailouts of banks, brokerages and possibly even car makers -- all of which face the possibility of insolvency."