First, the technicals are suggesting a surge in gold prices to above the $US 2000/ounce level. On Chart 1 we can see that a bounce could occur of the 50 day moving average above the 200 day moving average.
|Chart 1: Gold Price|
|Chart 2: Gold Price (Citibank Analys)|
|Chart 3: PHYS gold premium V.S. gold price|
Last but not least, we saw gold being slammed down yesterday, but it moved back up later in the day (Chart 4). Bull markets always have sharp declines and gradual increases. This is also a bullish signal.
|Chart 4: Gold slammed down and moves back up|
And by the way: