Gold On The Brink of Breakout

Gold futures are on the precipice of a potentially important upside breakout this morning on the back of Consumer Price Index data, with the /GC contract rising more than 1.7% in premarket trading.

The yellow metal has been in a range since September, forming a triple bottom near the 1,625 level and a double top near 1,735. In recent days, /GC hit yearly lows around 1,618 and then surged upward more than 7%. This move is now taking price above the resistance confluence of the 1,735 double top as well as a downward sloping trendline beginning with the June highs near 1,882.

More positive news for the bulls includes the Relative Strength Index (also known as RSI, which measures price momentum) making new relative highs along with price, as well as major moving averages starting to turn upward.

If the move up continues, look for new potential resistance at the 252-Day Exponential Moving Average, which is currently near about 1,787. On the other hand, if things start to fizzle, there’s a source of potential support in the 63-Day EMA, which is right around the 1,700 level.

Image sourced from Shutterstock

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.