Weekly World Gold Index

As explained over the past few days the yearly, quarterly and monthly charts of the world gold index are bullish. The earliest signal possible would be a new TD Setup on the monthly chart but we wouldn’t get to bar #9 until at least March 2010. Now its time to check out the weekly chart.

The displayed chart begins at the Autumn low of 2008. From there we rallied until February 2009 and then consolidated for six months before beginning yet another rally leg. On 9/4/09 we hit TD Sequential bar #13 but never experienced a price flip before reaching the risk level of 1078.10. A month ago (11/13/09) we hit TD Combo sell bar #13 but again reached the risk level (1150.80) before any action could be taken.

Even though this past week finally produced a price flip we can't do anything until the next setup forms. In fact, this week’s decline was so severe that it has produced a potential bullish reversal pattern in the RSI.

Bottom Line: Like all the higher time frames the world gold index is also bullish on a weekly basis. Tomorrow I will complete this sequence of gold charts with a look at the daily.

Technical Analysis of for longer-term positions:

Dollar Index: Out. (0.65 point loss after 1 trade). If able to punch through 76.8-77.05 this will signal continued bullishness. Note that the dollar is strengthening as the bonds weaken.
World Gold Index: Out at 1161.80 on the close of 12/4. Watching 1101.20 to see if support develops.
Cash SP500: Out on a close below 1085.89.
10 yr Bond: Neutral, waiting for a signal. It should be noted that the bond yield has punched through TDST resistance on the daily chart and so the bond itself is in a bearish trend.

Waiting for an initial signal on the CRB Index.