Jesse Colombo:Gold's Breakout Needs Further Confirmation

The below analysis was contributed by Jesse Colombo, Director of Marketing, North America for @BullionStar. Forbes contributor. Recognized by the London Times for predicting the Global Financial Crisis.

Here's a theory Jesse have developed in recent days (a thread ):

1) Though $Gold - main 2412(GCmain)$ priced in $USD Index(USDindex.FOREX)$ has broken out of its summer consolidation pattern (see chart below), it hasn't broken out in most other major currencies.

Because of that, gold's breakout doesn't yet have the momentum/staying power that it will have once it finally breaks out in all major currencies. I believe that gold is close to a breakout in all major currencies and that will kick off a much more powerful phase of this bull market without the frustrating choppiness we've been seeing this summer.

Gold USD breakout

See the rest of this thread for charts of gold priced in other major currencies.

2) Here's gold priced in euros. It hasn't broken out yet:

Here's gold priced in euros

3) Here's gold priced in British pounds. It hasn't broken out yet:

Here's gold priced in British pounds

4) Here's gold priced in Canadian dollars. It recently broke out, but without much gusto just yet.

Here's gold priced in Canadian dollars

5) Here's gold priced in Australian dollars. It didn't break out yet.

Here's gold priced in Australian dollars

6) Here's gold priced in Chinese yuan. This is a very important one because China is a major driver of gold's bull market. It didn't break out yet, but I'm betting that fireworks are going to happen once it does.

Here's gold priced in Chinese yuan

7) Here's gold priced in Japanese yen. It didn't break out yet.

Here's gold priced in Japanese yen

8) Here's gold priced in Hong Kong dollars. It recently broke out.

Here's gold priced in Hong Kong dollars

9) Here's gold priced in Singapore dollars. It didn't break out yet. This is a very important one because Singapore is a regional gold trading hub and it is expected to become even more influential in the gold arena:

Here's gold priced in Singapore dollars

10) To summarize, gold's summer breakout is in its infancy and it needs further confirmation in the form of it breaking out in the major currencies I showed in this thread.

I believe gold's fits and starts over the past few weeks is partly explained by the lack of breakouts in all major currencies. Consider that a form of "breadth," if you will.

I also view that prospect as a reason for optimism once the breakouts occur across the board. The other factor to consider is the very light trading volume during the breakout in U.S. dollars over the past couple weeks.

That can partly be explained by summer trading volume, but I really want to see volume pick up in a big way to confirm the breakout(s).

light trading volume in gold