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Gold Price Breaks Above 1300; 1331 is Next

After stalling at 1285 and falling back to 1260, gold price surged today, pushing above the 1300 psychological handle, and central pivot of a previous consolidation area. The break above 1300 introduces a bullish outlook, reversing a bearish outlook that was signaled at the end of May. If there is a pullback, the 1280-1300 area will be key, and the 40 level for the 4h RSI reading could also be important. If on a pullback, price settles in that area, and the RSI holds above 40, the bullish outlook is still in play and the bullish continuation could be imminent.

(gold 4h chart, 6/19)

In the daily chart, you can see that the break above 1300 exposes the 1331 high. We also see that the bearish trend from 1388.54 to 1240.50 basically showed a failure to test the 2014-low. With a higher low and a break above the channel resistance, the market also opens up the 2014-high at 1388.54. If price action tests and stays north of 1300, then this bullish outlook toward 1331, and then 1388 highs, is in play.

(gold daily chart, 6/19)