“The Golden Rule: He who owns the gold, makes the rules.” Old adage

Gold is becoming interesting. I am using a chart of GLD instead of actual gold, since GLD is posted instantly during the day and gold is posted only at the close. Note that GLD yesterday morning gapped up and out of its base, and well above its June peak. Thus, gold may finally be on its way to higher levels. 

I’m using a P&F chart to simplify and clarify the action. Gold has risen to fill the 1640 box, which is constructive. The next bullish action would be a rally to the 1650 box. This would take gold clear out and above its consolidation base, and would put it in line to try for 1680.

With stronger gold, the gold mining shares are beginning to move up. Below is a P&F chart of GDX, the ETF for the leading gold miners. GDX has risen to the 47 box, which is promising action. A rise to 49 would represent a bullish breakout from the base.

“December gold closed at 1640.50 while hitting 1650 intra-day, and this is good action. I bought GDX and GDXJ last week, and I doubled up today.” – Richard Russell

Ed Note: Richard Russell is 85 years wise and has been studying markets for the bulk of those years. His service is something that was bullish Gold when it exploded to $800 oz 32 years ago. You can tell from this comment he is getting quite bullish Gold again after having been bullish for the latest run from $250. 

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