New Upleg for Gold?

Gold should not be up today, but it is. The strength of the dollar against the euro and the yen usually has a negative impact on gold, but something else appears to be going on that the price pattern and technicals are warning about. My pattern work argues that I need to treat the Feb 5 low at 102.28 in the SPDR Gold Shares (NYSE: GLD) as the end of a significant correction off of the Dec 3 high at 119.54. If that is correct, then all of the action since Feb 5 represents an “unwinding” into a new upleg that should thrust above key near-term resistance at 112.18 (from Mar 3) on the way to a revisit of 118-120 thereafter.

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