Sunday, August 26, 2007

Gold - On The Line

Oh God! Please tell me what to do.

Huh! Let's see if he can clean up the mess I left.

Of course I got out of there early. Whadya think I'm a dummy?

No matter what I do, I'm screwed!

Below is a monthly bar chart of the December (most active) COMEX contract. Last weeks intraday low was on the second more upwardly sloping trend line. That is pretty strong support.

Below is a weekly bar chart with equal spacing tool marks.

Between the horizontal support at about 650, gold being on a major uptrend line, the commercial paper market almost freezing up in the US, people running to US banks taking out cash, the Fed even taking boat loans from banks as collateral, the US Treasury at its debt ceiling, it looks like it is upwards from here for gold.