“Whether it be gold shares on their own, compared to gold, versus bonds or versus the stock market, gold shares are rising from the dead.” - Aden Sisters, sourced from Peter Brimelow's Marketwatch column (link below).Gold is up about another $30 from when I published yesterday's post. I never assume that we'll get a move like that in 24 hours, but I know that we have days ahead of us in which gold will move $100 or more. Gold is up nearly $150 in just over the last 62 hours.
Yesterday I posted a 3-yr weekly chart. I thought it might be interesting to look at an even "bigger" picture of gold. Here's a 10-yr, monthly chart of the Comex gold:
There's really not a lot that can be said beyond what is being conveyed by the chart itself. Leonardo Da Vinci could not have created a more perfect diagram of a bull market. We've had three nasty bull market price corrections during this 11-yr bull. I've highlighted them with the red circles. Each one is characterized by a quick fall from a cyclical price peak, followed by a period of consolidation, followed by another extended move to a new high. I excpect this time around to be no different.
Again, notice the positioning of the MACD signal. Given that this is being measured on a monthly time frame basis, it will take a long, extended move higher to produce an over-bought MACD reading. In other words, every other wildly bullish indication is being confirmed by this indicator.
I was mentioned this morning in Peter Brimelow's Marketwatch column - Brimelow is probably the most experienced and knowledgeable of the mainstream gold market reporters/writers: "'The Golden Truth website, reportedly written by a gold-market professional, says on Wednesday after a detailed chart discussion: “From both a fundamental and technical standpoint, the indicators for gold to make a run to new highs have not been this bullish in the 11-year bull market.'" Here's his report from today: LINK Brimelow has a lot of connections in the market not available to most writers and it's worth checking Marketwatch for his reports.
I'll end with one thought for you ponder: The gold (and silver) bull market has had an impressive 11-yr run, given the incredible amount of resources that the western Central Banks and media spin-machines has thrown at gold in an attempt to suppress the price and discredit gold's importance to any financial system - just imagine how powerful and violent the move will be once the Fed/ECB/BOE lose all ability to control the price...