From a technical poit f view, take a look at the gold chart....

From a technical poit f view, take a look at the gold chart. Note the similar chart patterns between now and mid 2006. After spectacular rallies, both the May ‘06 rally and the rally at the beginning of this year, gold entered a consolidation period that took the form of a descending triangle. After that it broke out at $625 per ounce and rallied 60%. As you can see the pattern is very similar for what’s going on right now.

The other point worth noting is the extremely strong underlying support that the 200-day moving average has acted as. On some rare occasions gold briefly broke below its average, but it didn’t stay there for long.

There are loads of good reasons to remain bullish on gold. Perhaps even more so than oil, long term.

How high could gold go? Nick Jones of The Real Deal and Whiskey and Gunpowder, a fine technical analyst is forecasting a new high in the neighborhood of $1,700 to $1,900 an ounce.