Bullish Chart Clues For Gold--Upside Above $1,500 Possible
(Kitco News) - The Goldman Sachs Commodity Index (GSCI) is a basket ofseveral major raw commodity futures prices, including grains, energies,international foods, metals and livestock, rolled into one composite index. Theindex is a good gauge of the general trend of the raw commodity sector. See onthe weekly GSCI chart that prices are still in an uptrend that began in early2016. In fact, recent price action has formed a bullish symmetrical trianglepattern on the weekly chart. Such suggests an upside "breakout" fromthe pattern is coming soon. This is a potentially positive development for theprecious metals markets.
Meantime, the weekly continuation chart for nearby Comexgold futures shows prices are in a longer-term uptrend from the late-2016 low.A bullish pennant pattern has formed on the weekly gold chart, from the priceaction seen so far in 2018. However, there are stiff technical resistancelayers just above the market, as seen on the weekly chart. If prices can pushabove the 2016 high of $1,377.50, as thebullish pennant pattern currently suggests, then much more upside real estatecan be achieved, including price targets of $1,500 or even $1,600, in thecoming months.
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