Gold is at $830.
Going into the Autumn months, the outlook for the gold sector has improved considerably from just a few weeks ago.
Selling pressure has for the time being subsided and although sentiment is still quite poor across the sector, to a contrarian, thats actually a Bullish indicator. Commitment of Traders reports shows a liquidation significant enough to suggest that much of the hedge fund presence has gone for now. This is a good thing. When the Funds start to rotate money back into this sector, then it will move up very quickly.

Gold fell hard in July and August and made an important low in the $780 area. While it will not be without its difficult days, the odds are for a strong September and October rally to take Gold back above $850 for the next attempt at getting past $900. This level has proved difficult to hold during 2008 amid a myriad of conflicting global economic signals.

As for the Junior Gold stocks, they have been hammered. No, let me rephrase that. They have been taken out, shot, beaten to a pulp and then shot again, just for good measure. Many quality juniors have been sold down to levels one would never have imagined considering the relatively high price of gold currently. Not all the juniors will rebound as some never had projects worth promoting in the first place, but those that have good properties, solid Management and most importantly money in the bank, will come back and perhaps faster than a lot of people think. At this stage, I would only be looking at those companies with sufficient funds to last a minimum of 12 months because new financings may not be easy for a considerable time yet.

It has been a difficult time for gold investors but better days are ahead and we are now entering the seasonally strongest period for gold. Its times like these that one wants to accumulating quality names in the gold sector.