The $2000 level of course is a large, round, psychologically significant figure, and the fact that we gave up some of the gains in that area should not be a huge surprise. If the Federal Reserve continues to focus on inflation, it could strengthen the US dollar, temporarily putting negative pressure on gold. Nonetheless, we are overdone so I would be very cautious with the idea of buying this market, especially as parabolic moves do tend to have massive pullbacks, even if we do continue to go higher.