Markets Today - Quick Peek

Someting very unusual is happening in the bullion markets, namely that gold is trading up while other markets are selling off. We came perilously close to a major technical crossover in the weekly chart in gold prices. Without today's rally in the face of European market routs, and treasury bonds steadying, gold would be one of the troubled assets.

But we are in a bull market for gold. The correction since September, 2011 looks altogether very similar to the correction in May 2006. The May, 2006 correction was an affair of 8 months duration until the bull market resumed.

Its been 8 months since the last high, we should be seeing the onset of a rally in bullion prices. And this at a time when other markets might be selling off.

$GOLD Weekly

If you have an account in stockcharts.com, then you can use the 1600-size chart to count the weeks and compare.

While the European sell-off does wonders for gold and the treasuries, it does nothing for GBN.V shares.

supersize: http://www.flickr.com/photos/11747277@N07/6919332262/sizes/l/in/photostream/

stockcharts.com

-F6