Gold: Look Out Above
One very reliable directional indicator for the price of gold is The Privateer 5×3 point and figure chart, the one below goes back to 1985. I was in a lazy mood today and I think this chart pretty much speaks for itself. The P&F pattern is a double-top breakout and the odds are high that the price of gold will soon challenge the $-based all-time high, following right behind the persistent all-time highs for euro-gold that have been hit repeatedly over that past few weeks. Here’s the source for this venerable chart. I am not a current subscriber to the The Privateer but was for several years: LINK
(click on chart to enlarge)
On another note, several people have remarked to me that it now appears, based on this week’s action on the Comex, that some big money may be challenging the fraudulently massive short positions in gold and silver. Hard to say for sure, but in the face of increasingly aggressive attempts by the likes of JPM and HSBC to beat down the price of gold and silver, especially silver, the futures have been rebounding sharply almost every day. I’m not sure I would want to be short the precious metals market right now…
