What do we see? First up, the shorter down trend line captures the peaks since gold topped out last year in the $1900s. You will note that it broke through that line today to the upside. I expect that it will stay there ultimately, but maybe with some volatility along the way.
Which brings us to the longer uptrend line that dates back over a bunch of years now, and well captures some peaks and troughs in that time period. That is where the battle is really going to happen, probably at about the 1700 level. The fact that it lies so close to that shorter down trend line means we really are at a pivotal moment in the story. But, with an expectation that the world is getting worse, and central bankers will need to react...to borrow from Fleck, the path of least resistance appears to be higher.
Update / Addendum: Somehow I failed to mention it in my first version of this post, but there is another piece to this chart. It doesn't take a genius to see how the past year very much appears to be a pennant formation in the midst of the larger uptrend -- that is, a continuation pattern while the dominant directional trend catches its breath. Another positive for the bullish case.
