Bullish Pattern for Gold

Although Italian and Spanish bond yields have plunged today, in reaction to optimism about a forthcoming "real deal" to solve or contain the Euro-zone debt crisis, let's notice the neither the price of spot gold nor the Euro/USD appear impressed -- at least not if the solution implies a massive ECB liquidity injection.

That notwithstanding, the gold pattern carved out off its October 21 low at $1666.60 exhibits bullish structure. That "warns" us about forthcoming renewed strength in gold and the SPDR Gold Shares (GLD) as long as $1705/00 support contains any acute weakness from current levels.