My belief has been gold will generally rally into the end of October, but it was in the first part of November when we have to get concerned about a secondary top. However we would continue to see some rally attempts. So here we go, November 1st and gold is getting itself into a bit of a pickle. It has gotten quite overbought and is seeing distribution coming in (blue arrow). So now, I will do some light selling of gold, and likely also do some shorting, if gold trades above a large (for now) resistance area around $1305. But that’s for me, it’s just how I approach this business. For most people, just be patient and wait for the really good entry points I have markedon the chart – those are very good buy zones. Right now, is a lousy time to be buying PMs. But just to add, PMs are in a bull market. In a bull market, we often don’t see the “best” entry points to buy. It is why for months in this blog, I kept telling people if gold trades below $1252, then that would be our first good, but definitely not great, entry point into gold on the long side. I took my own advice and did some nibbling on physical below $1250. But, I do believe we are heading lower first, before we head much higher. If gold does have a good selling wave, I do plan on buying much more – especially mining stocks and silver. And I also received a question about shorting GDX yesterday – the reply can be seen at the post. So currently, I’m quite cautious about gold.