Bullish Chart Clues For Gold--Upside Above $1,500 Possible
(Kitco News) - The Goldman Sachs Commodity Index (GSCI) is a basket of several major raw commodity futures prices, including grains, energies, international foods, metals and livestock, rolled into one composite index. The index is a good gauge of the general trend of the raw commodity sector. See on the weekly GSCI chart that prices are still in an uptrend that began in early 2016. In fact, recent price action has formed a bullish symmetrical triangle pattern on the weekly chart. Such suggests an upside "breakout" from the pattern is coming soon. This is a potentially positive development for the precious metals markets.
Meantime, the weekly continuation chart for nearby Comex gold futures shows prices are in a longer-term uptrend from the late-2016 low. A bullish pennant pattern has formed on the weekly gold chart, from the price action seen so far in 2018. However, there are stiff technical resistance layers just above the market, as seen on the weekly chart. If prices can push above the 2016 high of $1,377.50, as the bullish pennant pattern currently suggests, then much more upside real estate can be achieved, including price targets of $1,500 or even $1,600, in the coming months.