The Golden Bulls are definitely having a moment. In early December, as always, I highlighted the seasonal trend towards higher gold. Again it worked and continues to be the best seasonal deal I know of. It was the ticket to start the year forever with a solid win. This year was particularly good, as gold rose from a triple bottom in early November. Growth picked up after a softer October CPI and was boosted by a recovering US dollar and expectations of a weaker Fed. It is now up 17% since the beginning of November, 10% since the beginning of December and 5.2% since the beginning of the year. Perhaps most important going forward is the lack of real resistance before $2000. Gold cleared a small resistance at $1,877 this week, but it has not slowed at all. Last week I highlighted a head and shoulders reversal pattern with a target of $1975 and it remains an attractive target. If the gold build-up is greater than normal seasonal business – and I’m keeping an open mind – the catalyst will be continued buying from global central banks looking for alternatives to USD reserves. Earlier in the month, we learned that China had increased its gold purchases and that Russia was likely to increase its reserves as well. Zooming to the bottom of the chart appears to be a false breakout to the downside and a quick reversal. If so, it could break the double top and send gold to $2,500.