Here is a two year chart of the GLD ETF. Notice the following.
1.) The ETF created a very strong triangle base for the six months from the beginning of March to the beginning of September.
2.) Prices are currently trading around the high established in early May 2006. This is essentially a price consolidation.
Here is the three month chart of gold. It simply gives us more detail about what has happened. I included Fibonacci levels in anticipation of a pullback. The index has advanced sharply from it's base, so a pullback wouldn't be surprising. In addition, the index hasn't made a strong move above the 2006 level.
My guess is the market is treading water waiting for more confirmation from the Fed about policy. In addition, we're getting very mixed inflation numbers right now. While the official BLS statistics are OK, food and oil inflation is very much a possibility.
