Quick Gold Comment

Now that I'm set up with a new data and chart provider with far better analytics, I'm able to take a closer and better look at things. It was an early Christmas present. One of the analytics which I was missing was stochastics and what I now see is that gold is coming out of a very oversold situation. If we can hold through the light holiday chop and slop of the next week at present levels, I'm actually liking that the 50 day has crossed back above the 200 day moving average and this may mean we don't retest $600. I also like that ETF demand for gold has been strong with StreetTracks holding over 441 tons. Another reasons to like gold is that the dollar hasn't been able to reclaim much lost territory since the favorable employment data. There are other reasons as well, but it's late and I'll save that for another time. Here's there gold chart... Let's face it, that gold chart looks like a wreck out of the springtime peak, but there is the hint that the consolidation came to an end with the run in late November to $650 and that a new upward channel is in the making... time will tell. This is one area that I am planning to put capital to work in with alacrity in the New Year.

Here's the Philly Gold and Silver Index... all things considered, it has held up remarkably well... a testament to consolidation in the industry and expectations that gold and silver are not finished yet. 120 has been triple bottom support for the XAU and notice the 50 day is crossing over the 200 dma as well...