A $22.00 surge saw gold catch investors flat footed as it reversed the previous days losses and rocketed up to $679.50.

It would appear that inflation raised its ugly head just to give everyone the jitters and gold, which is often seen as a hedge against inflation, took its chance to move to higher ground.

A quick look at the Chart;

The technical indicators are on the high side but not alarmingly so. The gold price has also put some daylight between the 200DMA and itself.

We think that this may be just the start of an energetic run for gold prices as it has managed to accommodate various downward pressures lately. Gold’s stubbornness and refusal to go down with any significance bodes well for the next phase which we believe will be a run to the $750.00 level before taking out $1000.00 some time this year.

Get in position, pick your partners, in terms of gold mining stocks and hang on it will be a volatile ride.

21 February 07