Hi a quick update on the latest Gold cycle which kicked off last week. According to the EGM Gold Model last week's price action *does* qualify as a bona-fide breakout into a positive cycle, albeit muted by the usual coordinated takedowns (eg in the quiet Friday after hours markets). Referring to one of Mr T's charts:

http://www.tfmetalsreport.com/sites/default/files/users/u2/4-16amgoldd.jpg

Referencing this chart, the EGM breakout took place mid-week (withint the usual 2-3 days variance) within the parallel trading channel defined as:

Bottom of the channel: draw a straight line across the 3 consecutive upturns dated late Feb, early March and about a week later

Top of the channel (ie where Gold busted out of the channel last week) - 2 points defined as late Feb and early March with - and this is technically correct - the b/o on the third thrust out of the channel.

Since then the PG has given back ground but this is nothing more than a bullish classic retrace from the b/o point. Nothing to worry about here as Uncle Jimmy has wisely counselled. My take is Gold hit bottom today at $1640ish and heads higher in the week ahead. I don't expect any spectacular upside through the remainder of this cycle. The best is yet to come afterwards beginning June - a date that should ring familiar to Sinclair's followers.