As the gold market powers to a six-year high, it’s prudent to examine longer-term charts to gain an important perspective on where prices have been and where they may be headed. The monthly continuation chart for nearby Comex gold futures shows prices are trending up and have just pushed above what were stiff technical resistance barriers at the highs scored in recent years. That upside “breakout” from those resistance areas gives the bulls much more power to achieve their next upside price objective on the longer-term chart. That would be chart resistance at the $1,530.00 area. The power with which the bullish upside breakout has occurred suggests the $1,530.00 level will be reached this year, and possibly by the end of the summer.
By Jim Wyckoff For Kitco News