I firmly believe we're witnessing a great primary bull market in gold. This bull market is opposing a long-term bear market in fiat or non-intrinsic currencies. Since there is no discipline putting a limit on fiat-currency production, I believe in our lifetimes we will see the end of fiat currencies as acceptable substitutes for real money. When that happens, there will be no ceiling for gold. In their guts and in their hearts, every seasoned investor knows this, which is why the bull market in gold will continue.

How high will gold go? Wrong question, how low will fiat currencies go? The answer, as Bob Dylan might say, is "blowin' in the wind."

June gold, above 1166, will signal an extremely bullish breakout. The chart below shows the large symmetrical triangle in gold. Recently, gold broke out above the triangle to a peak at 1166 (blue arrow), then declined to test the upper trendline of the triangle. Now gold is pushing north again. If gold rises above 1166 to a new high for the structure at the blue arrow, I think gold will make its way up to 1200. But first, June gold must close above 1166.

I think gold is now under heavy accumulation. I note that gold is often knocked down in the thin after market. I'm beginning to think that this is done on purpose. Large interests who want to accumulate gold have a reason to want to knock gold down, and thereby be able to accumulate it at "reasonable" prices. The last thing they want is for gold to run away on the upside before they have accumulated as much as they are able. I think this is particularly true of China and Russia and other Asian nations.