Gold broke out of the bullish triangle of the right shoulder of the bullish upside down head and shoulders pattern. Another bullish aspect of this move is that on Tuesday, gold went up despite the USD going up .8 on the index and oil moving down.
A daily bar chart:
This weekly bar chart does not show Monday's, Tuesday's and Wednesday's prices:
Willie of the Golden Jackass writes:
"Forty years ago in 1959, any Chinese citizen caught with gold in possession was thrown in jail. But now the Chinese Govt is taking radical measures to change widespread indifference and lack of understanding for precious metals as an asset class. The year 2009 is the FIRST year that the Chinese public is permitted to own physical gold or silver. Officials are now trying to drum gold & silver as an investment from city billboards. Beijing leaders realize that public demand aids their strategy to pressure the USDollar and unseat it from the global catbird seat. Banks offer an array of precious metal investment options to the pubilc, far more than are offered to Americans. As Simon Black of the International Man says, "Instead of Maoist propaganda, though, they are attempting to change the entire perception of gold & silver in the Chinese public. Simply put, the Chinese government is trying to trigger a national gold craze, and it is working. The Chinese public now has gold trading platforms on steroids. You can buy silver bullion or gold bars at any Chinese bank in four different sizes. Wealth management products tied to gold are skyrocketing in popularity, and the public can now instantly buy, sell, and trade gold 24 hours a day in five different forms with different eight types of services.""
Meanwhile in the US, investor sentiment towards gold, silver and the related shares is the worst that it has been in the past 9 years. Wait till people wake up to what is really happening to the world's "monetary" system.
He didn't buy gold back in the days when it was under USD 1,000.