"Don't forget gold is about to move into the strong demand season," blogger notes

Toby Connor of the Gold Scents blog takes on the gold bears in a July 27 post, excerpts of which follow, minus his analytical charts of gold's recent performance:

"The fundamentals haven't reversed for gold so I'm confident in saying that smart money isn't selling gold, it is using this dip to accumulate. ...

"At the moment everyone is jumping on the bear side for gold. Remember we saw this exact same sentiment in the stock market 3 weeks ago. I knew the bears were going to be wrong simply because the market was way too late in the intermediate cycle for there to be enough time left for a significant decline.

"The gold bears are going to be wrong also and for the exact same reason. It is just too late in the intermediate cycle for there to be enough time left for anything other than a minor decline.

"The reason of course is that gold is still in a secular bull market. In bull markets you buy dips. ...

"Sentiment-wise gold has now reached levels more bearish than at the February bottom. That means gold is at risk of running out of sellers.

"And finally, and most importantly it's just simply too late in the intermediate cycle for gold to have enough time for a significant drop. This is the 25th week of the cycle and the intermediate cycle rarely lasts more than 25 weeks. That puts the odds heavily in favor of a major bottom either sometime this week or next. And don't forget gold is about to move into the strong demand season. Like clockwork gold invariably puts in a major bottom in July or August before the run up into the strong fall season.

"The bears are going to be wrong again."

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