When we look at the gold market, it's up another three-quarters of a percentage point, up another $17 for the week. For the daily charts, it's still moving right along – the pattern has been and continues to be higher lows and higher highs.
Gold, and in particular, silver, had a buoyant week, climbing higher last Friday despite the surge in nonfarm payrolls. One would expect the release to temper gold back, as it will be longer before any rate cuts materialize now.
The key point here is that gold finally and rightly is getting repriced to a somewhat more reasonable level, albeit still well below said Scoreboard valuation.
Its breakout above $2,200 appears to be busting above the handle. If that is correct, the pattern suggests that gold could have targets up to the $3,050 zone with potential minimum objectives of $2,375/$2,385.
The gold breakout represents a major positive move in the making for the anti-bubble and as such, a negative one coming for traditional bubble beneficiaries.
gold stocks’ upside potential is massive. Not only have they been battered technically, but they are deeply undervalued fundamentally. They are earning fat and fast-growing profits thanks to these high prevailing gold prices.
You can see how the market's holding up over all key moving averages, and it's trying to move to the right-hand side after spending five days in a row over the upper Bollinger Band.
