Comment by Richard Russell first: Gold — The daily gold chart (I’m using GLD as a proxy for gold) is worth studying. GLD has advanced above its 50-day moving average. It has also carved out a “head-and-shoulders bottom” pattern. Today GLD surged above the blue down-sloping resistant trendline. GLD appears to be in the process of testing its recent (Jan. 11) peak at 112.85. If 112.85 is bettered, GLD (and gold) will probably try for a new high, putting April gold at 1213.

Marc Faber, George Soros agree gold prices set to rise

Is gold in a cyclical bull market that could last for years to come or is it another asset bubble created by loose monetary conditions about to crash? The debate has been raging for some time and shows no signs of abating.

But, the strange thing about this debate is that some of the perceived opponents may actually be more in agreement than they would  let us believe.   

Renowned billionaire financier George Soros became the latest investor to issue a warning in January that with interest rates low around the world, policymakers are risking generating new bubbles which could cause crashes in the future.

Last month it was revealed that Soros more than doubled his fund’s holding in the biggest gold exchange-traded fund (GLD) in the fourth quarte of 2009r, according to a filing with the US Securities and Exchange Commission.

Soros Fund Management LLC held nearly 6.2 million shares of GLD valued at about US$663 million as of December 31, adding 3.728 million shares valued at US$421 million That’s up from roughly 2.5 million shares at the end September.

Speaking to The Daily Telegraph, on the fringe of the World Economic Forum, Soros said: “When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment”. The ultimate asset bubble is gold,” he added…

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