Gold: The move through $1818 resistance has opened the door to the next leg higher

Gold

A huge breakout on gold to multi-years has come as the market has accelerated higher in recent sessions. The move through $1818 resistance has really opened the door to the next leg higher. The near term target of $1848 has been achieved, whilst our implied upside targets of the April to June consolidation rectangle have also pretty much all been achieved now too. Essentially it is now just the all-time high of $1920 to come. We have been backing this gold bull run for a while and are still confident of further gains in due course. Technically, the move is strong, but is also becoming slightly stretched too now. Previous bull runs of January and February where the RSI peaked over 70 came with a corrective one day candle failure. This needs to be watched for now, as this move is at risk of near term profit-taking. The hourly chart shows $1837/$1843 as a consolidation area from yesterday, whilst $1818 as the first real support. Hourly momentum is strong but stretched. It would not be a surprise to see at least a pause for breath in the next day or so.

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