Editor's Note: Toby Connor is the author of Gold Scents, a financial blog with a special emphasis on the gold secular bull market.

Last week I was told that we were going to see more gold weakness in the days ahead because big money had to sell their positions. Folks, smart big-money traders don’t sell into weakness. These kinds of investors don’t think like the typical retail investor who's forever trying to avoid drawdowns. Big-money investors take positions based on fundamentals and then continually buy dips until the fundamentals reverse. The fundamentals haven’t reversed for gold so I’m confident in saying that smart money isn’t selling its gold, it's using this dip to accumulate.

With that being said, there are times when big money will sell into the market and it's why technical analysis, as used by retail traders, often doesn’t work. They sell into the market to accumulate positions. Let me explain.

....read more and view 3 charts @ Gold Bears Are Wrong, Smart Money Isn't Selling