Gold is set up positively for the new year, with gold already having been strong relative to the euro and yen over the course of the past several years and now showing very real signs of support at $1,045/ounce to $1,065/ounce for the past two months.
The world needs to lose more faith in the Euro and Yen, and eventually in the U.S. dollar for gold to trade much stronger. That shall apply obviously, too, to the gold-related ETFs. The world has already begun to lose faith in the euro; its faith in the yen is unwinding; faith in the dollar remains intact at the moment. And, quite honestly, I remain bullish of the dollar relative to most other currencies, but even the dollar may begin to lose luster relative to gold.