Central banks open spigots.

This was a momentous week. Events went off as I expected:

1. The ECB announced it would buy sovereign bonds (and print money to do it);
2. The German Constitutional Court voted to allow bailouts (OK, I wasn't sure of this);
3. And the FED told us about QE3;
4. England had announced a QE and China had initiated a 400B building program.

The Stock Market jumped and gold vaulted past Larry's (and others') magic number.

The question we now have is: is gold back in the Bull? To answer this, let's review the price changes in gold:

The graph tells us the following:
1.Gold has broken out of the wedge formation;
2. Gold has followed up the breakout;
3. There has been serious buying, note that the black bars are much higher than the red bars;
4. The MACD is maxing out and gold has moved into the overbought territory;
5. Spot price rocketed past the 50 DMA and the 200DMA and both averages turned upward.

MY CONCLUSION: Gold has resumed its climb, but may soon pause for a breather.