I am still long-term bullish but this consolidation is definitely wearing down my patience, which probably means it’s almost over!

What I see is a scenario very similar to what happened in beginning of 2011 before blasting off to new highs.

Gold in my opinion, due to not being able to push up above 1300, will need to drop from current levels to about 1175 to clean out the lethargy before it has the energy to rally to 1400.  One note of caution is dropping to 1175 will make gold drop below its 10, 20 and 50-month moving averages.. But.. we’ve seen that before this year and gold is just more volatile now than ever.  As long as the monthly averages don’t cross over bearishly, there is still a chance for this bull.

Here is a chart of what happened in 2011.