On the last trading day of 2012, a watershed event occurred. Key gold stocks staged superb breakouts, from their weekly chart power downtrend lines.
The gold exploration companies also look poised to rise significantly, and I expect large Japanese and Chinese companies to contact many of them soon, in an effort to secure reliable pipelines of the metals they need, to build their products.
For bullion investors, silver is clearly the metal poised to shine the brightest, in the short term. To do so, gold must rally. When you look at my next chart, I think you’ll agree that “Queen Gold” is indeed ready to perform.
I have given a label to the price area above $1800. I call it the “Green Zone”. The green zone is an area of tremendous support and potentially represents a place where an institutional buying frenzy could occur, pushing your gold items to much higher prices.