Hi sinbob

To be honest, I'm no longer that obsessive with short term movements in the gold price. In the past few years there has just been too much political price manipulation as eveyone is so well aware of. Is the Treasury supplying gold to the market from all the custodial gold held at the New York Federal Reserve? Who knows what desperate men will do?

I wonder how Jesse Livermore would have reacted to: "The short term and weekly gold prices are in conflict with each other?" I'm confident that he would have said: Well, you know we are in a bull market. For the moment, the cartel is brimming with confidence as they have successfully beaten back the yellow metal from the big psychological $1000 area. Now, these guys will sell into any good sized rallies under the magic number to reinforce their second rigged $1000 cap until underlying bullish tones consume them, again.

I'm more of a long term participant in markets these days which means I don't pay too much attention to the ripples but I am interested in when gold finally gets over the hump for good. The indicator that I am using for guidance is the action in GoldCorp(GG-NYSE). Link provided to the chart I'm referring too: http://bigcharts.marketwatch.com/qui... .

On the chart the gold colored moving average line is the 100 week or 500 day average, the blue is the 200 week or 1000 day average. GoldCorp currently is making up its mind where it goes next generaly confined by the 500 day at around 31.75 and the 1000 below at about 28. Today's last is 29.51, up 0.87. On a two year chart of GG http://bigcharts.marketwatch.com/qui... a head and shoulders bottom formation has been developing since August of last year and is very near maturity. It's neckline is at about 32.50. Just connect the tops since September of last year. If GG gets above the 31.75 area followed by doing it again at the 32.50 area I would supect gold would be over $1000 to stay. The big head and shoulders formation is capable of supporting a move in GG to about the 70 area. Yes, 70 is correct. What price gold would be at then is anyone's guess but it is safe to say that it would be well above the $1000 level.

To answer your question, "Our we being set up one more time," I would say no. The gold/XAU ratio chart is indicating much stronger accumulation in here versus the September and October collapse when gold and the stocks really tanked via the price rigging by the two or three unnamed US banks as reported by Ted Butler.

I suspect that gold is in the same consolidation type presently as it experienced during the 2006 to 2007 time period when it traded between about $725 and about $565. Time elapsed on that resting period lasted about 15 months. Currently, the present time-out during this bull market has lasted about 13 months. It wouldn't surprise me if gold, basically, traded in a sideways range from about $875 to a high of about $950 for the next few months. It will be important to keep an eye on GoldCorp and the XAU for time guidance and direction. I don't have to be right but that's the way I see things at the moment.