Gold Price Trying To Break Out

New York (Nov 2)  After Wednesday’s ugly trade, gold spiked on Thursday, testing the $1,240 level once again. Although gold broke down through $1,220, trading as low as $1,215, it immediately bounced back to the $1,240 resistance level.

Gold looks poised to make a big up move and push through $1,240 resistance sooner rather than later. Gold’s rally may have been sparked by the weaker dollar; however, gold has been gaining strength with the stronger dollar.

Our expectations are for gold to break out to the upside and test the $1,275 level. Gold can churn here while building a solid base. The $1,220-$1,230 levels should hold as support, and it’s only a matter of time until gold pushes through $1,240 on its way to $1,275.

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