From a poster that I’m going to miss, ‘synced moves’ are taking place now. There are several ways of looking at the gold chart. My bullish bias has been entirely down to my acceptance of the relevance of cycle theory. I know Surf is the expert, but I’ve been using forms of cycle theory in my job as a meteorologist since 1987. Pretty much everything on planet Earth that lives or is part of a natural or man made system (plants/animals/weather/climate/global financial markets) has a discernible cycle. To ignore that would be foolish.  There is more than one way of viewing the recent price action in gold. Some show that we broke out a while ago, others show that we may be in the process of breaking out now. A few more dollars from here and however you slice it, we will have broken free from a very long term trend line on an absolutely massive wedge. Support currently in the $1220 region (that’s just a rough guide from the chart below).

and if you’re wondering what forces are at work – just look at where we are in the cycle. Examine the now positive and up-trending indicators like TRIX. The bottom red line turned from resistance to support at the start of the last bull run. All these years later and it’s providing important support. The down trending resistance line from the 2011 top has been broken to the upside on the log chart.

And whilst you’re wondering if gold might go to $800, take a look at the dollar chart and explain to me how you could view it as bullish…

If gold goes to $800 and the dollar climbs back to new highs it’ll be completely unprecedented at this point in the respective cycles. We’re fast approaching the point of recognition (as gold reaches the psychologically important $1400 and the dollar sinks to new lows). In my opinion, it’ll be at that point when money starts flowing into the mining sector and we see the mining indices playing catch up.

As an aside, after all the recent unpleasantness, I feel somewhat uncomfortable on this site, and will probably post much less frequently. I’m not wanting the sort of ‘debate’ that took place recently to happen to me. I prefer somewhere where all views and opinions are welcome, as long as they are backed up by charts that make sense and a polite turn of phrase.