Gold just broke out of an 11-month long trendline. Right now Gold is testing the important $1,300 level. If the current level is not broken, then Gold would create a double top pattern which would push Gold lower, back down towards the recently broken trend line.
Momentum right now is bullish on the yellow metal, but as I stated above, it could find resistance at the current levels.
The $1,300 level is crucial at present time, but if Gold finds the strength it needs to break it this week, then a very strong bullish run could be expected.
Important notes
- Gold received bullish momentum because of the upcoming British elections, the issues in the Gulf and the Comey testimony.
- The two main sources of momentum in Gold are the USD and uncertainty.
- Right now USDX (US Dollar Index) has bearish momentum and we have plenty of uncertainty.
Gold Daily Chart
By moving to the monthly chart we find something even more interesting than the above setup. We find an even longer trendline, a 7-year long trend line that has never been broken apart from this month.
Price action is using the top trendline as a support on the monthly chart which clearly indicates that a new bull run could be starting this month.
Gold Monthly Chart
I am long-term (Weeks/Months) bullish on Gold.
