Gold breaks out of consolidation sample
I like gold however I hate a breakout on a vacation.
Gold is up $5.35 to$1327.05 at this time, narrowly climbing above the January 31 excessive of $1326.57. The rally marks a brand new excessive since April of final 12 months.
Technically, it is a breakout from three weeks of consolidation within the $1300-$1326 vary. The easy implication is a rally to the 2018 highs within the $1350/65 vary.
After all, it is by no means that straightforward. What complicates the transfer at this time is that it is coming in low liquidity on a US vacation. That raises a definite chance of a false breakout.
The playbook right here goes to be to carry tight till New York returns tomorrow and wait-and-see if the break holds. On the identical time, you’ll be able to’t ignore it if gold begins to runaway to the upside in a stronger signal that the breakout is confirmed