Gold in Bullish Consolidation

Gold continues to act extremely well, despite a still-strong performance of the dollar and general commodity weakness. Why? I am not sure, but there is certainly no shortage of fear about markets, economic growth, beleaguered banking systems, and growing budget deficits to elicit a newfound attraction to gold. From a technical perspective, all of the action since Tuesday's rally peak in the SPDR Gold Shares (NYSE: GLD) at 85.29 acts like a bullish consolidation area ahead of another thrust that should hurdle 85.29 on the way to 86.30/60. Only a decline that breaks below 83.00 will argue that a deeper near-term correction is materializing ahead of the next upleg.