Spot gold prices rocketed again in overnight trading, reacting to Bank of Japan's renewed ZIRP as a cue to investors to get out of very low or no rate of return investments into riskier ones! Gold certainly qualifies and also satisfies the desire to protect against an inflationary shock that likely is the light at the far end of the "tunnel," as well as against domestic and global political instability.

My intermediate-term work points to $1350/80 next, which is just 2-4% above current levels and just might represent a minor target in a price move that appears to be picking up "parabolic" type pattern momentum. At this juncture, only a decline that breaks $1280 will begin to compromise the powerful upside assault of gold prices. ETF traders will be watching the SPDR Gold Shares (NYSE: GLD).

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.