$Gold Monthly

The one chart that keeps things going is the gold price chart. The monthly chart is showing the breakout, and if its anything like the correction in 2006 - 2007, then prices will possibly break out in the 15th month.

Most people were expecting a pull-back of some sort this week, but that didn't materialize. Instead, resistance is being tested in the $1780 range. It would not come as a surprise that the previous high will be tested before the temporary pullback.

The following article on MineWeb discusses the winding up of the gold bull and that prices can be seen in the $4000 range before blowing off. It will not come as a surprise and a matter of no small irony if gold prices obtained exactly 100X their depression era high of $41.32.

Gold miners aggressively sold gold into the markets and achieved this high price after the U.S. dollar was devalued, though the $35/oz. price fix was accepted as the benchmark.

http://www.mineweb.net/mineweb/view/mineweb/en/page33?oid=159213&sn=Detail

Two gold price projections that haven't yet been disqualified are:

eWave Projection. This price projection seems fanciful to say the least, but should gold markets serve as the money market due to a major systemic financial collapse, then a price like this could be conceivable. Gold prices have so far notably lagged the price projection.

http://www.sharelynx.com/chartstemp/GoldeWave.php

Dax In Gold. This price projection is the more reasonable of the two, which is calling for an eventual gold price of €3000. Most inflationary assumptions are well off track by adding currency depreciation in with inflation. If Jim Sinclair's outlook for 1.40 Euro is correct, then an eventual high in the gold price of $4200 is not so far-fetched. A long term assumption of $2500 average is a useful number to work with.

http://www.realterm.de/DAXinGold.php

Both price projections have a similar end date, by coincidence. What that means for a gold miner like GBN.V is that they can pay for their entire development on their own, showing organic growth for the forseeable future.

supersize:

http://www.flickr.com/photos/11747277@N07/8035654204/sizes/l/in/photostream/

http://scharts.co/RDCrMb

TLT Weekly

One thing that was missed this week from GBN.V was the Q1 financial report. According to the TMX, issuers have 60 days to report financials. Friday was exactly 62 days since the end of Q4 fiscal 2012.

A great deal of hand wringing has been expended on whether the Fed will fill everyone's pockets and where the bond market is going. The TLT is showing some gaps which need to be filled, meaning we should see some meaningful declines in the next two weeks.

GBN.V is strongly inversely correlated with the 30-year U.S. treasury bond price and is likely to move inversely to any decline in treasury prices. An interim rise in yields will greatly help GBN.V share prices, and not necessarily pull the carpet out from under the gold price.

supersize:

http://www.flickr.com/photos/11747277@N07/8035771141/sizes/l/in/photostream/

http://scharts.co/QbPCQ1

-F6