Spot Gold : We gave our 2011 target of 1650 in January, no need to change it just yet

That gold is trading well above 1600 is due to the insane debate (or lack therefor) over the US’s debt ceiling. Of course they have to print more money, and anyone who thinks otherwise is a fool.

By mid week we forecast a deal will be on the table, and the risk of gold taking a serious fall is high. As such, the higher it climbs in early to mid week trading the better. Be ready to short it. The initial drop should be as if not more spectacular than the ascent over the past week or so.

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