The gold price broke up and out (gapping up and out) of its triangle in early September only to immediately turn around and head down (closing the gap) to make a slightly lower price for this current reaction or base building period. This failed break out meant that gold's down trend line had to be adjusted just slightly upwards.
(A weekly bar chart. Click on graph to increase size.)
No big deal since the fundamentals are so screamingly good for the gold price and the silver price. That just meant that gold would take a little longer to turn around and start heading up in another major upward price move. 2007 should be an outstanding year for gold and silver.
This second break out is a biggy since gold moved up at least 3% ($18) above its break out level ($600), and held above the break out level plus 3% ($618) for at least 3 days.
The gold price highs of the last week in September and the 3rd week in October (which were lower than the earlier break out high), plus the downward sloping top side of the triangle, plus a Fib support level offer good support. Call that support a little above $600.
(A daily bar chart. Click on graph to increase size)
Sure, that 2 week break out up trend has just ended. That is a normal type of reaction for the latest short term gold price move. No big deal.
"What, me worry?" - Alfred E. Newman