The picture has changed for gold. First of all, the U.S. appears to be considering military action in Syria. Second, traders are becoming more skeptical of the idea that tapering is imminent. And between Syria and the evolving thinking about the Fed, December gold futures have gotten pushed up to a 2½-month high of $1,423.
However, gold is now approaching significant technical resistance around $1,428. I believe the push higher in gold will begin to lose steam, and present the opportunity for a contrarian play. For one thing, it's hard for me to believe that the current administration will formulate an aggressive military plan. After all, the public certainly does not appear to have the appetite for it.
(Read more: Gold jumps on possible strike against Syria)