Gold bulls have endured a long and frustrating year. Gold continues to move sideways. I believe the breakout will be to the upside, for a number of not-so-thrilling reasons.

First, the growing tensions between Iran and Israel seem to be close to boiling point. “Prime Minister Benjamin Netanyahu and Defense Minister Ehud Barak have ‘almost finally’ decided on an Israeli strike at Iran’s nuclear facilities this fall, and a final decision will be taken ‘soon,’ Israel’s main TV news broadcast reported on Friday evening.” ~ The Times Of Israel newspaper, August 11, 2012.

A number of high-ranking politicians in Israel argue that Israel’s military is not adequately prepared to “manage” a military reprisal attack from Iran. That doesn’t seem to bother the pro-war crew.