After ricocheting from the illustrated overhead resistance line twice since our last trade, gold is now going in for a third test as I write this. While it may not break this time, we should stay on watch for a potential breakout as a breach above this line probably has the potential to eventually send gold to its former highs.
Fundamentally, there still remains good reason to believe gold will go higher. The market rallies everyday, but with it we are seeing higher . Pair that with a Fed that insists it is on hold for the long run and it's highly likely that we will see higher asset prices all across the board ( gold , oil , other , equities) until the Fed decides it needs to tame .
Let's buy gold on a break above the overhead resistance line illustrated above.
Target 1: 1316
Target 2: 1325
Bonus Target 3: 1345