Gold continues to act extremely well, despite a still-strong performance of the dollar and general commodity weakness. Why? I am not sure, but there is certainly no shortage of fear about markets, economic growth, beleaguered banking systems, and growing budget deficits to elicit a newfound attraction to gold.

From a technical perspective, all of the action since Tuesday's rally peak in the SPDR Gold Shares (NYSE: GLD) at 85.29 acts like a bullish consolidation area ahead of another thrust that should hurdle 85.29 on the way to 86.30/60. Only a decline that breaks below 83.00 will argue that a deeper near-term correction is materializing ahead of the next upleg.

By Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com (www.mptrader.com) , a real-time diary of Mike Paulenoff's trading ideas and technical chart analysis of Exchange Traded Funds (ETFs) that track equity indices, metals, energy commodities, currencies, Treasuries, and other markets. It is for traders with a 3-30 day time horizon, who use the service for guidance on both specific trades as well as general market direction

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