Gold Breaks Major Resistance Trendline

Having spiked to just shy of 2017 highs, gold has broken the major trend across the highs since Jul. ’16 at 1,281. It’s also through a longer-term trendline formed across the highs since Sep. ’11 (1,274). As a result, according to Goldman's chief technician Sheba Jafari, the next big pivot area in focus is up at 1,304-1,315. Jafari adds that "this includes two separate ABC targets from March and May. Given the overlapping/corrective nature of the run up since December, there’s a good chance the market could hold below this area. Moreover oscillators are already at the range highs and looking stretched."

Bottom line, need to be careful of any/all signs of a top near 1,304; need a break higher than 1,315 to suggest potential for a more meaningful advance. Anything back underneath 1,281 signals some near-term weakness.

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