After the historical highs that the whole market has witnessed on Gold, any investor would name Gold as the most important trading event from early October to early December; it was neither the US Dollar nor the Great British Pound. It was Gold which rose by over 20% in dollar-terms.

The DJIA is up close to 10% since then and the S&P is up almost 8% in the same period. Longer-dated Treasury notes and bonds have not made any real money in that time. Yet gold has pulled back now that the US Dollar has started to strengthen again.

Analysts took a look at many issues to see if a top has been put in or if this pullback is a significant buying opportunity. The first issue is the chart and what the technical patterns are saying.

Adam Hewison, a well-known technician has provided a quick chart analysis. His take is that gold has entered the silly season now that we are outside of the bands and on the backside of December 15.

After analysts looking at the charts going back a year, gold could go back down to $1,050.00 or even closer to $1,000.00 per ounce before any long-term uptrend on the chart is violated.

Then there is the fundamental issue about gold and its relation to the Dollar and to interest rates. It is true that the United States has been an outright violator of trust with the new deficit path and violations of the old debt ceiling.

The Chinese and the Middle East obviously want a hedge on protecting themselves from a weakening dollar. The saving grace for the US greenback is Europe via the Euro. Greece is in trouble with the ratings agencies.

The British are not a part of the Euro, but the Pound Sterling is at risk if it can’t quell the recent fears brought in by the ratings agencies. Not everyone can hide in commodities, so any further developments in the E.U. would effectively take away the risk that the U.S. Dollar would further lose its position as the world’s reserve currency.

Then there is the notion of what will happen to US interest rates. The belief is that a Fed Funds hike will come in the summer of 2010.

Unfortunately this still leaves a question mark for beyond what is just the rest of 2009. What seems obvious now is that the straight line to $1,300.00 or $1,400.00 in gold is no longer one that is put in as a “definitely until told otherwise” status.