As of this moment, despite the weakness in spot gold prices and the SPDR Gold Trust (NYSE: GLD) this morning, the near and intermediate-term technical conditions of the market are relatively strong. After last weeks $50 upmove, the $25 giveback (at this mornings low of $915.30) reflects a normal correction within an otherwise bullish market environment. Lets remind ourselves that last weeks upside pivot reversal occurred right at the Oct-Mar up trendline. In addition, lets notice that the upside pivot reversal returned the price structure back above the rising 50 DMA. As we speak, gold is consolidating between its 20 and 50 DMA, which usually is very positive action when the 50 DMA is rising. Once the consolidation runs its course, gold prices should thrust above the 20 DMA on the way to $960 next. Ay this juncture, only a decline that breaks the 50 DMA ($907.18 last) will weaken my current outlook.
