Hello. You're with CantosCharts. It's Francis Hunt, and we're looking at commodities today.

I've got up gold versus the Australian dollar. There's been a lot of attention to deficits recently. In fact, my GP said I'm suffering from attention to deficit syndrome. And I want to keep an eye on gold in terms of how gold is doing relative to all the other currencies that are around.

So this first chart is a daily chart from gold versus the Australian dollar.

What you may find from the high prior to the credit crunch downswing - that was the deflationary threat that we had - we have yet to make those highs in terms of Australian dollars. However, we've had a very bowling-type base-building action, which I have underlined in black.

Subsequently, we had a breakout, you might see very small black lines followed by an orange support line. That was a breakout to the upside, when gold was making its move against a lot of the other currencies. Since then we've seen a loss in that momentum and it's come down. But since then, we've also been doing - on a smaller scale - a bowling, U-shaped, base-building price action, which is very, very interesting.

I've circled in red a family of hammers that I've set up, just above the support turn resistance of orange set up on the orange line earlier. And there's a second set of hammers forming also, circled in red.

So in my view, this is an interesting time for gold versus Australian dollar, and I feel that there's a bottom being built here.

No immediate action necessarily expected, but certainly one to watch against one of the strongest commodity currencies.

The US dollar is a more traditional view that we take on gold, and as everybody is aware, the dollar's been rather strong.

For the early part of this chart, we're seeing lower highs and lower lows, up until this point. We put a nice hammer in there, however, and recent price action has just taken us a touch over a spiked high.

I wonder if we're not going to be in between range and also potentially not threatening the low made of in and around $1040. A lot of people were of the opinion that we'd see $900 again, and I question whether we'll take out that low.

So could we be base-building here? Or will the trend originally established, which is largely counter-trend of gold weakening, continue for a while longer?

Just to put that into perspective, I'm referring to the weekly chart for gold versus the dollar, and this is a nine-year bull run we've been talking about. I've highlighted with black lines the pullbacks that we've had on a number of occasions. The credit crunch one being the most substantial, as you can see. But there have been plenty others. But largely, don't forget, this is a bull run of very longstanding timeframe - nine years.

I put in blue lines, large zones inside which the market has largely gone to sleep. In other words, we've not had massive movement. For example, the purple vertical line indicates the end of the consolidation period. That was 2nd of September last year, when we saw gold running. But the orange line was the start of the credit crunch. So that whole period - that whole year, almost year and a half - gold largely pulled back a large way and took a year and a half just to get back to where it was before.

Other areas, which are blue-lined out, are also where the market's gone to sleep.

Don't forget about this market. It's likely potentially to consolidate and maybe base-build for a while, as I'm highlighting in green. But if I were to predict for the future, I would see that base-building, a little bit of coming off even, and base-building, and then followed by further spikes to the upside.

You don't want to be out of the market when these spikes take place, so accumulation of gold would be a great idea, in my view.

This was the euro. I switched from my Swiss franc long to playing the euro weakness on gold, and we had the Hunt Volatility Funnel breakout. Very strong breakout, bar classic long. And I took it all the way up to the resistance in and around EUR800 level. Then we followed through with the breakout to the upside, probably targeting in and around the EUR830s, possibly EUR840. But getting a bit toppy. You can see the long selling wicks at the top, so there's selling action coming in. so this move may be close to completing, and you can expect a pullback as well.

Having a look at gold versus the pound, once again, I've got my cokey out and I'm drawing a cup and saucer there. My apologies, a cup and handle. You'll see the bowling-type base-building price action that's occurred with gold versus the pound. And subsequently we've got a little handle coming in. right now we are approaching the rim of that handle. The wicks are getting a little bit beaten back, so we might see a little bit of withdrawal before it takes out that level. But very bullish for me, this chart largely for gold versus sterling.

That's the short-term view. There's the prediction. A little bit of selling currently at these levels, because we're approaching a near-term high. So you may see a pullback on some level, and a little bit of base-building before reasserting going back up. So there is time.

Thank you very much for watching. I hope this has been interesting. And it's Francis Hunt, the Market Sniper. I look forward to speaking to you again soon.