Gold closed above $1420 last week, indicating a move up to $1500. Consolidation in the region of $1400 will give the Bulls time to build on the momentum for the move up to $1500 and beyond. Last year's breakout saw GOLD rise from $1160 to $1420 in 4 months from August to December 2010, a 22% rise. A similar 22% move from the $1310 low in Jan 2011 will see Gold rise to $1600 by May. Gold Miners are a leverage on the Gold price. I use Smith & Williamson Gold Unit Trust 452p. S&W Gold moved up from 310p to 460p in 4 months, a rise of 48%. If Gold Miners continue on 2x leverage, S&W target will be 600p. HUI 573 is a proxy for the Gold Miners. A close below the 20ema (548) will be the warning that the Bull move is over. Once $HUI breaks out and closes above 590, I will look for a pullback to 560 region before the next move up to 660. Ultimate target is 850.
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