Gold Prices Target Yearly Highs Near $1390
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GOLD – A sharp break higher for gold prices has coincided with an important build in retail trader selling, and a contrarian view of crowd sentiment leaves us in favor of further gains.
Trade Implications GOLD – Last week we noted that a gold price break below $1310 would confirm that the precious metal set an important top, but that obviously never happened. Instead prices have now broken above key Fibonacci resistance at $1334, and our focus turns to major resistance at year-to-date highs near $1390. Failure to hold above $1334 would negate our calls for further strength.
See next currency section: EURJPY - Euro Breakdown versus Yen Warns Against Complacency
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.