By Kira McCaffrey Brecht
"June Comex gold futures are currently mired in their seventh month of sideways correction/consolidation to the longer-term secular bull trend which has driven the yellow metal higher over the last ten years.
"Let's take a close look at the monthly chart to see what it tells us. Since hitting a new all-time high at $1,911 per ounce (basis the nearby continuation contract) on the monthly chart, Comex gold has tumbled $386 to the December 2011 low at $1,525 per ounce. Since that the market has moved sideways within that large $386 range—over a seven month period.
"SIMILAR CORRECTION IN 2008
"In recent years on the monthly chart, the rally has been fairly orderly without pro-longed market corrections. However, there is a similar type of correction from March 2008 through October 2008. See Figure 1 below. That correction saw the yellow metal fall from $1,014 to $681— a decline of $333 per ounce. That correction took seven months before the bulls reasserted control of the market.
"WHAT CAN WE LEARN..."