Higher Gold

I stumbled across this article about gold in the Sydney Morning Herald (hat tip to Bill Cara). The basic premise is that longer term pension money is quietly rotating into gold, there is more to come and that these buyers are strong holders.

Ross Norman from BullionDesk.com is quoted as saying "Anybody who thinks this market is about to head sharply lower is reading it badly."

Earlier this morning Faisal from Stocks and Blogs left a comment wondering if commodities are ready to take off. I think it depends on his idea of take off but I am not expecting a repeat of April in the immediate future (but would take it if it comes).

To question the above article, the move earlier in the year would reasonably seem like hot money, if so, how much of that hot money came out in this correction and what will that hot money do next?

I do think gold generally heads higher as a function of US dollar issues and its own fundamentals but to be clear I don't expect it to "take off."