Gold: The yellow metal has moved above $1800 for the first time since 2011 [Video]
|Gold
A decisive breakout on gold has been seen as the yellow metal has moved above $1800 for the first time since 2011. The move has been characterised by conviction in momentum, something that has tended to be lacking in previous attempted breakouts. The daily RSI has moved into the 70s, Stochastics are consistently now above 80 and MACD lines are accelerating higher. A breakout from the April to June trading range gave an implied target of around $1820 on a conservative basis, but the more bullish target can derive as much as $1858. There is effectively now a lack of resistance until the all-time high at $1920 from way back in September 2011, so there is little reason not to expect continued upside. Also given the strength of momentum, we are happy to back this run higher, whilst any near term supported weakness will be seen as a chance to buy. The latest breakout around $1789 is initial support, whilst what is close to a five week uptrend is underpinning the run higher around $1780 today.
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