Gold broke beyond the strong resistance level at 1348 yesterday as equities and the dollar tumbled, with price reaching 1370 before falling back a little to its currently level at 1365.
1348 was a key level, as price had attempted to break through this on twice previously in July and August. As price passed 1348 a lot of stop positions were taken out, accelerating the progress quickly up towards 1360 and beyond.
We now expect to see prices reach 1385, 1400 and possibly 1415 before the next correction. As gold trends upwards now, for the first time in many months, it looks less and less likely that we’ll see a return in to the 1200’s in the near-term although that shouldn’t be ruled out after the summer as we head towards the September Fed meeting and potential news that QE tapering will commence.
1348 was a key level, as price had attempted to break through this on twice previously in July and August. As price passed 1348 a lot of stop positions were taken out, accelerating the progress quickly up towards 1360 and beyond.
We now expect to see prices reach 1385, 1400 and possibly 1415 before the next correction. As gold trends upwards now, for the first time in many months, it looks less and less likely that we’ll see a return in to the 1200’s in the near-term although that shouldn’t be ruled out after the summer as we head towards the September Fed meeting and potential news that QE tapering will commence.