Gold's Near-Term Uptrend Still Intact

Although the streetTRACKS Gold Shares (NYSE: GLD) was not able to spend much time above its Feb high prior to rolling over into a correction, the weakness thus far has NOT inflicted any meaningful damage to the near-term chart pattern. Let's notice that only a break that sustains beneath last Thursday pullback low at 67.25 will violate a prior low -- the first time this has happened since the March 5 low at 62.00. It is for that reason that we must take such a break of 67.25 seriously, because it could very well be the first warning signal of a more substantial period of weakness for the GLD. My pattern work is warning me that a break of 67.25 likely will trigger additional weakness that presses the GLD towards an important test of its October 2006-present trendline, now at 65.10. Having said all of the above, the ability of the GLD to hold above 67.25 will keep the near-term trend intact and dominant.