Gold Breaks Out Monday, Back To Support Tuesday
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(Kitco News) - Monday was a big day for the yellow metal as it pushed through the $1,320 level like a hot knife through butter. With the breakout, we have to determine if it’s real or a false move and gold will return to consolidation.
On the positive side, gold broke above $1,320, and it was able to hold that level through the day with only one retest on Monday. The close was strong. The negatives were the lack of volume and excitement over a breakout.
This morning gold has once again pulled back to the $1,320 level, giving back much of the gains from Monday. It appears we are in for a battle between the gold bulls and bears, and $1,320 is the battleground. We are bullish long term, but will sit this battle out and wait for the gold market to commit to the next leg up or stay in a trading range.