On a past post on Monday, November 25, 2013, “Gold and the A-B-C Correction” I displayed a 15-year gold chart and wrote, “Bullion – The long term trend in bullion is still up as displayed in the 15 + year plot to the left (insert). Currently the 12-year primary trend line is at the $1200 dollar level. This important level was tested during the (C) corrective wave low of June 2013 when bullion bottomed at $1183. The current wave of selling should not violate the June 2013 lows – see support from the major producers (above).”
Ok - so now let us revisit the same chart - now updated to January 29, 2014. I am using the same trend lines with a semi-log scale. Don’t forget – you can’t place trend lines on a linear scale if the price doubles. Observation; bullion seems to have completed the long bear phase as displayed in the A-B-C corrective period. All we need now is for the gold complex is to confirm the new bull and begin to operate inversely to falling stock markets.