Two weeks ago, Gold rose $US 9.50. Last week, Gold rose $US 6.90. This week (Dec. 16-20), Gold rose $US 7.30, despite a $US 5.40 fall on Friday, December 20. In fact, in Asian trading on December 19, spot Gold reached almost $US 355 in a bout of panic short covering. As all the charts on this page show, there can be no possible doubt remaining about the BULL market.
You can see the beginnings of panic (amongst the institutional US Gold short sellers) on the daily Gold chart. Note the fact that Gold was "gap up" on December 19. So far, this panic has been held at bay with Gold falling in all markets on Friday, December 20 culminating with its Comex spot future close of $US 340.50. Too little, too late. The technical damage has already been done. Gold has left its "bottoming stage" far behind and is well and truly launched on its bull market.
Here are the relative performances of $US Gold, the $US Index, and the Dow since Gold broke above $US 300 on March 27:
|
FINALLY Gold's percentage gain on this table is (very slightly) BIGGER than the percentage loss on the $US index over the same period. What that means is that Gold at $US 340.50 now almost exactly mirrors the loss of the $US since Gold broke above $US 300 to stay way back in late March.
Last week, Gold finally breached its $US 330 glass ceiling. This week, it has left it in the dust. 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:
|
As you can see, Gold has risen quite a bit more from its 2002 low than the $US index has fallen from its 2002 high. Any other result would have been grotesque, given the economiic and financial situation inside the US this year..
And here's one final perspective, comparing Gold's 2002 high closing level set on December 19 with its level today.
|
It will be interesting to see how this table moves for the few trading days left in 2002. The $US index is only 0.02 points above its 2002 low. If it falls below its 2002 lows (103.98 on a spot future basis) before the end of the year, a highly likely occurrence, it will be interesting to see if Gold can equal or better its December 19 spot future 2002 high close of $US 345.90.
In the larger scheme of things, it doesn't really matter whether it does or not. Gold has established its Bull market this year. Next year, we will see how far it can get. Merry Christmas to all our readers. We would say that for Gold, a Happy New Year is a sure thing.