Although Italian and Spanish bond yields have plunged today, in reaction to optimism about a forthcoming "real deal" to solve or contain the Euro-zone debt crisis, let's notice the neither the price of spot gold nor the Euro/USD appear impressed -- at least not if the solution implies a massive ECB liquidity injection.

That notwithstanding, the gold pattern carved out off its October 21 low at $1666.60 exhibits bullish structure. That "warns" us about forthcoming renewed strength in gold and the SPDR Gold Shares (GLD) as long as $1705/00 support contains any acute weakness from current levels

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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