Gold Rush

Gold did its thing again on Tuesday. with a major move higher to resistance. After 2 weeks of building a digestive bull flag, it committed and launched off of prior resistance to the upside. How far did it go? Right to the next resistance level.

The shiny rock has had a great 5 month run higher. But how much longer does it have? I do not know for sure, and neither does anyone else. But the current leg within the move off of the October low measures to 1365, near the April high. That has been a trouble spot for Gold several times over the past 18 months.

Currently momentum is showing an overbought condition with the RSI at 75 and sticking straight up. The MACD is not quite at the recent tops but closing in on it. The price is also outside of the Bollinger Bands®. These point to the increased possibility of a pause in the short term, to reset the indicators, a cooling pause. Many are looking for a return to 1600 or more for Gold. Lets see what happens at 1365 first.

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