Gold Action for 12-11-2006

Gold is consolidating nicely in the 620 range; it managed to break out of its power-down trendline yesterday. A test of the old high may occur within the next few weeks as there doesn't appear to be much downside.

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A bizarre spike appeared on the Gold chart today. Notice the steady move up, without any retracement; each minute the buyer made another large purchase until it ran into a wall of limit orders that brought it down to the previous level.

Whoever it was had no regard for getting the gold at a certain price, but appears more interested in getting a massive amount all during one time period. I saw the same sort of action in the Silver chart when it was at $10/oz, after which it rose to $15/oz.

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