Gold: breakout

Gold has broken through a major trend-line and rallied strongly. The next few days will be crucial in establishing the new trend higher. I see 1722 as an initial target, where there is resistance from a clustering of both weekly and monthly pivots. Alternatively it is possibly the break may have been false and the price might continue pulling back, with support initially kicking in at the 38.2% Fibonacci at 1675 and then 1653.

Written by Forex4you