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Gold Closes at New All-time HighErik McCurdy Gold surged higher today, extending yesterday's rally into the close following brief "sell the news" weakness earlier in the session accompanying the quantitative easing announcement from the Federal Reserve. Price action has now moved slightly above the mid October all-time high near $1,381, and a confirmed breakout would reconfirm the secular uptrend and forecast additional gains. (Click on images to enlarge)
It is also important to note that my Gold Currency Index (GCI) closed at a new all-time high as well.
While a negative divergence formed between the GCI and gold in September when gold last broke out to a new all-time high, that potentially bearish divergence no longer exists and both daily charts are equally bullish at the moment. If the GCI and gold subsequently experience synchronized confirmed breakouts to new all-time highs, that development would be a major bullish signal forecasting substantial gains for the precious metal during the next several months. ### Nov 4, 2010 Erik McCurdy is the senior market technician for Prometheus Market Insight and has been analyzing charts every day for over 15 years. The software program that he developed to monitor long-term stock market trends has correctly predicted over 90% of the turning points in the S&P 500 index since 1940. His Gold Currency Index has predicted every major trend change in the US gold market since its creation in 2005. Disclosure: Long SGOL 321gold Ltd |
