HAS GOLD FOUND IT'S FOOTING AT $570?

The art of charting. There is magic in the charts. Which WHICH charts? Chart your favorite stock or commodity over a different time period and you'll get a very different picture. Here are six gold charts. The 60-day chart shows gold definitely on the decline. The 10-year chart shows it clearly on a rise.



Despite this apparent short-term complacency I still think gold will see a fresh high above $850 in the next 12-24 months with oil, Iran/Iraq, North Korea and terrorist activities by al-Qaida all potential catalysts. Holding above September's low around $570 and then closing above $610 should clearly indicate the bull market remains intact and new highs are on the offering.

Spot gold, XAU, hit an intraday low of $573.70 an ounce Tuesday, matching the low in New York, before recovering to hit an intraday high of $577.40. It was down sharply yesterday, however. It looks to open strong this morning.

The seven-day relative-strength index of gold for immediate delivery fell below 30 yesterday for the first time in two weeks, signaling that prices are likely to gain. Bullion tumbled the most in three months yesterday as crude oil fell below $60 a barrel.

Gold earlier tracked the decline in oil prices, said Mikikaru Amano, an analyst at Taiheiyo Bussan Co. in Tokyo. Oil prices "are likely to keep declining as members of the Organization of Petroleum Exporting Countries, except for Nigeria and Venezuela, haven't cut production. Prices will head toward $55 a barrel.' We'll see. World wide demand is still high and OPEC may cut production. $55-$75 is still an historically high range for crude.

Read Jon Nones' Gold's Suspect Sell-off

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