Amidst the carnage, gold is acting well -- like gold should act. Every day, sometimes multiple times each day, investors get blindsided by negative news that clobbers stocks, but not gold, which appears to be under accumulation during every bout of weakness.

Today's low in the SPDR Gold Trust (NYSE: GLD) represents a 50% retracement of the prior upleg, and which provided a pivot low at 117.00 into a $2 advance to 119.00. Let's notice that important May-June resistance resides at 119.70, which if (or when) hurdled should trigger upside acceleration towards 122.00.

Only a break below 117 will compromise the strengthening pattern.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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