In the wee hours of Thursday, the gold futures have rallied to levels not seen in almost six months and are targeting 1714.60 and 1734.30. This week’s narrow trading range in the 1690’s has given way to an upside breakout that has reached 1708.00 thus far. Today is the first of several eventful days in terms of central bank announcements and government economic data, and it would appear that gold’s uptrend has resumed. Our 1734.30 target is familiar to subscribers and is based on the 1592.10 ‘A’ point on the daily chart. The consolidation in the 1690’s might have gathered enough energy to pop the futures above the 1714.60 level, but traders should be aware of that target as well, which derives from an alternate ‘A’ point at 1611.80. And we should be on the lookout for determined price-capping by the bears in connection with the many upcoming news events. A short sale of the higher pivot should involve a stop not lower than 1735.20. (Posted by Doug “harry” McLagan)
