GOLD ETF BREAKS OUT TO THE UPSIDE -- GOLD STOCKS ARE FOLLOWING -- BARRICK HITS NEW RECORD -- NEWMONT HITS NEW SUMMER HIGH

GOLD ETF HITS NEW 16-MONTH HIGH ... Earlier in the week I pointed out the the streetTracks Gold Trust (GLD) was nearing a test of its summer high. In today's strong trading, the GLD has not only exceeded its July high but its spring 2007 highs as well. That puts the Gold ETF at the highest level since the spring of 2006. Chart 1 shows the GLD gaining the equivalent of $12 in heavy trading today. [This is the first time in a long time that the GLD has made it to the big board's most active list]. If those gains hold through the afternoon, today's action will constitute a bullish breakout for gold and its related ETF. That's having a bullish impact on gold shares as well.

Chart 1

GOLD STOCKS SURGE ALONG WITH BULLION... Gold stocks are the day's strongest group. The XAU and HUI Indexes show gains of 5% and 6% respectively. Both are well above their moving average lines as well. Chart 2 shows the chart for the Market Vectors Gold Miners ETF (GDX). [The GDX invests in gold-mining stocks while the GLD in Chart 1 invests directly in bullion]. As strong as today's action is in the GDX, it's still trading well below its 2007 highs. There are several individual gold miners, however, that are doing a lot better.

Chart 2

BARRICK GOLD HITS NEW RECORD ... If you're looking for one standout stock in the gold group, my choice would be Barrick Gold. Not only is it the biggest stock in the GDX (15%), it also has the strongest chart pattern. Chart 3 shows Barrick surging 8% today. The chart also shows the big gold leader exceeding its spring 2006 high. That puts Barrick at a new record -- and on rising volume. Barrick isn't the only gold miner hitting a new record. Chart 4 shows Agnico Eagle Mines doing the same.

Chart 3

Chart 4

MERIDIAN AND NEWMONT BREAK OUT... Two other gold miners that are having strong days are Meridian and Newmont. They're not even close to hitting new records, but they are achieving bullish breakouts. Chart 5 shows Meridian Gold gaining 5% today and breaking through its summer high near 31. Meridian is the smallest stock in the GDX (3%). If you're looking for a gold laggard with size, Newmont Mining is worth considering. Chart 6 shows that gold laggard rising 5% and breaking through its summer high and its 200-day moving average. Newmont is the second biggest stock in the GDX (10%). MORE LATER.

Chart 5

Chart 6