Gold Prices Fighting To Break Out
Here we go again. After two weeksof consolidation, gold is trying to break out to the upside, $13 higher and sittingat resistance. This action was expected; big breakouts are typical out of thecongestion pattern.
The bigger question is where doesgold from here? The key level is now $1,240, as a break above brings $1,275into play. With the global tension and markets selling off, money is lookingfor a place to go and gold would be the ideal spot if it can break out.
We would expect a real battle atthe $1,240 level and would not be surprised if it failed to take out this levelon the first attempt. Many markets fail the first time to a new level, and wedon't expect this time to be different. Gold should pull back from $1,240,easing back to $1,230, which now appears to be new support.
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