Best Financial Markets Analysis Article As of this moment, despite the weakness in spot gold prices and the SPDR Gold Trust (NYSE: GLD) this morning, the near and intermediate-term technical conditions of the market are relatively strong. After last week's $50 upmove, the $25 giveback (at this morning's low of $915.30) reflects a “normal” correction within an otherwise bullish market environment.

Let's remind ourselves that last week's upside pivot reversal occurred right at the Oct-Mar up trendline. In addition, let's notice that the upside pivot reversal returned the price structure back above the rising 50 DMA. As we speak, gold is consolidating between its 20 and 50 DMA, which usually is very positive action when the 50 DMA is rising. Once the consolidation runs its course, gold prices should thrust above the 20 DMA on the way to $960 next. Ay this juncture, only a decline that breaks the 50 DMA ($907.18 last) will weaken my current outlook.

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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