Gold: Are we finally seeing a bullish breakout?

FOREXCOM:XAUUSD   Gold Spot / U.S. Dollar
Without putting too fine of a point on it, it’s been a rough 15 months for gold bulls since the precious metal peaked near $2075 in August 2020. For the first time in more than a year, there may finally be reasons for optimism among gold bugs.

On the back of this week’s 30-year high in the US CPI report, gold bugs have seemingly finally woken up to the risk of sustained price pressures, with prices breaking out to a new five-month high above previous resistance at $1830. With the 14-day RSI indicator showing a breakout of its own, this week’s price action could open the door for a continuation toward the previous resistance at $1910, $1960, or even the psychologically-significant $2000 level in time.

Only a break back below $1830 would erase gold’s near-term bullish bias.