Gold Prices Fighting To Break Out

London (Oct 23)  Here we go again. After two weeks of consolidation, gold is trying to break out to the upside, $13 higher and sitting at resistance. This action was expected; big breakouts are typical out of the congestion pattern.

The bigger question is where does gold from here? The key level is now $1,240, as a break above brings $1,275 into play. With the global tension and markets selling off, money is looking for a place to go and gold would be the ideal spot if it can break out.

We would expect a real battle at the $1,240 level and would not be surprised if it failed to take out this level on the first attempt. Many markets fail the first time to a new level, and we don’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.

KitcoNews