Gold on the Move

Spot Gold prices, and the streetTRACKS Gold Shares (NYSE: GLD) continue to climb... which means what, exactly? Is there inflation in the pipeline created by an economy that has been so overstimulated by a VERY accommodative Fed (since Greenspan really stepped on the monetary accelerator in 2000), that there is no denying the reaction of gold? Or is China diversifying its FX reserves into gold, again? Or does the gold market realize that no matter what, the FOMC cannot RAISE rates again in the near future-- not unless Bernanke and Co., want to risk a housing sector implosion-- that takes the economy with it...

Who knows? The only thing we do know is that gold is on the move. Looking at the daily chart, the GLD has made post-October highs at 64.94, the highest price since August. The price structure is in thrust position, heading for a tet of the July high at 66.42 next. Only a sudden downside reversal that breaks 63.50 will begin to compromise the current very constructive pattern.

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