Last week, Gold rose $US 9.50. This week, Gold rose "only" $US 6.90. Nevertheless, this week was THE week. Gold has finally broken DECISIVELY above the $US 327.80 2002 high it set back on June 4. On December 13, spot future Gold closed at 333.20 after hitting an intraday high of $US 336. This is the FINAL confirmation of the Gold bull market.
The most significant feature of this week is that Gold in $US terms made a new 2002 high at the same time as the $US measured on a trade-weighted basis (via the $US index) made a new 2002 low. For Americans in particular but for the whole world in general, Gold's utility as a "hedge" against currency debasement - even and especially RESERVE currency debasement - should be clear from its performance this year.
Here are the relative performances of $US Gold, the $US Index, and the Dow since Gold broke above $US 300 on March 27:
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While Gold's percentage gain on this table is now in double figures, but it is still smaller than the percentage loss on the $US index over the same period. If Gold's gain had exactly mirrored the loss on the $US index since March 27, Gold would have closed on December 13 at $US 340.20.
This week, Gold finally breached its $US 330 glass ceiling. In doing so, the spot future close reached levels which have not been seen since October 1997. Having breached this ceiling, which also, and not so coincidentally, happens to be the BOTTOM of Gold's previous (1993-96) bull market, Gold has now cleared the final hurdle to now accelerate on the upside.
Here's another perspective - a comparison between Gold's 2002 low and its present price and the $US index 2002 high and its present "price". All data is on CLOSING levels:
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All the charts on this page tell exactly the same story - Gold has broken loose. Especially relevant is the $US 1x3 point and figure chart, which has developed a steeper uptrend line.
Now, this is a table which we have been updating on this page since June 21, two weeks after Gold set its previous 2002 high on June 4. See, we KNEW Gold was going to have trouble breaching $US 330.
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Of course, this table is no longer relevant, since Gold's June 4 spot future close of $US 327.80 is no longer a 2002 high. As has been seen ever since June 4 however, the continuing weakness of the $US since June 4 has not been reflected in a higher Gold price - until this week.
"As all the charts above show, Gold is on the verge of cracking above its glass ceiling of $US 330. Once it does, we would expect the actual Gold price in the table above to catch up with the projected Gold price derived by the fall of the $US index very quickly. You have been warned."
That's how we signed off here last week. We still do expect this to happen, very quickly. Yes, there is always the "threat" of some frantic Central Bank Gold sale announcement. But even this, with Gold now having broken above six-month resistance, could well boomerang by CONFIRMING the growing panic of the monetary powers that be. Suffice it to say that the $US Gold bull market is now DEFINITELY established. Any short term "hiccups" to the contrary, there is only one longer-term direction for Gold now, and that's UP.