Spot gold continues to claw its way higher despite an otherwise "risk-off" profile for the session in equities (as seen in our hourly chart comparison with the e-mini S&P 500), along with bonds and foreign exchange.

The stair-step pattern off of last week's low (from Nov 1) at 1681.30 has the right look of a forthcoming vertical acceleration towards 1820 next. Only a sudden downside reversal that breaks key near-term support between 1775 and 1765 will compromise my near-term outlook.

Gold and the SPDR Gold Shares ETF (GLD) are attracting capital along with the U.S. bond market and the U.S. dollar. Why? Take your pick: flight to safety, geopolitical risk, Euro-Zone-implosion risk, and expectations that the ECB eventually will have to become the bailout receptacle of last resort, which is inflationary.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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