Gold's Little Brother Is Talking

08-23-2012 • http://lewrockwell.com, by Stewart Thomson

This chart provides an overview of the situation; there is a symmetrical triangle (highlighted in black) sitting within a giant drifting rectangle (highlighted in green).

To view the possible breakout, please click here now. FOMC minutes are scheduled to be released on Wednesday. While that report could create some significant price volatility, there’s no question that this morning’s technical breakout is a very bullish event.

The price of oil is rising in a near-perfect uptrend. Please click here now. Short-term traders can add to positions around the green horizontal lines on the chart.

The next upside resistance band sits at about $103. I’ll reduce my position by 5-10% in that price zone.

Higher prices for food and energy put a lot of upside pressure on the gold price. In the biggest picture, natural gas has stopped falling and may be forming a significant bottom. Oil is almost $100 a barrel, and last night soybeans surged to over $17 a bushel.

All of this price action is being factored into the gold chart, and an upside “price geyser” is now a realistic possibility.