Gold futures have enjoyed follow-through strength after holiday weekend, continuing August's key breakout
From a long-term perspective, Gold is trading within the upper portion of a year-long range that looks like it could extend towards 1500. If the July 2016 peak (1375) manages to cap, however, it could raise longer-term red flags for the latest 20-month recovery. This is because 1375 coincides with a 38.2% retracement of the overall prior range, and failure to break above it would suggest that recent strength is merely a corrective counter-move within the 6-year decline from 1900.
So, it is imperative that Gold futures take 1375 to the upside to keep momentum alive for a key equality target located just under the 50% retracement and psychological 1500 threshold.
From a long-term perspective, Gold is trading within the upper portion of a year-long range that looks like it could extend towards 1500. If the July 2016 peak (1375) manages to cap, however, it could raise longer-term red flags for the latest 20-month recovery. This is because 1375 coincides with a 38.2% retracement of the overall prior range, and failure to break above it would suggest that recent strength is merely a corrective counter-move within the 6-year decline from 1900.
So, it is imperative that Gold futures take 1375 to the upside to keep momentum alive for a key equality target located just under the 50% retracement and psychological 1500 threshold.