With military action in Syria looming, gold has reclaimed it "flight-to-quality" status. But while we see gold continuing to move higher in the short term, there will be a clear limit to how far it can run.
This commodity has fallen from grace even more dramatically than Apple did last fall. But we have recently seen a distinct change in sentiment. Noting that gold has risen 20 percent from its low, some "techsters" even want to point to a new "bull market" for gold—but we wouldn't go that far just yet.
(Read more: Gold: 'It's like summer never happened')
The Syrian situation elevated gold above $1,400 in a heartbeat, as fear of global reverberations spooked investor and rekindled the centuries-old urge to rush to the metal in turbulent times.
Unfortunately, we do not think military action in Syria will merely amount to a singular missile strike campaign, so gold buyers probably have a point. As we have not looked back since the market traded through massive stops above $1,325, we stay long and poised for the technical target of $1,525.
(Read more: Gold loses altitude as investors mull Syria strike)
Why that level? Well, $1,525 was a multiyear low that supported the gold futures market until it was pierced in April. These tumultuous markets, as well as skittish sentiment, should put a spring back in the gold bugs' step—but their jitterbugging should simmer down at $1,525 in the short term.