Gold surges to as high as 1365.24 so far and is attempting to break out from recent triangle consolidation. Immediate focus is now on 1366.05 high, which is nor far away. Based on current momentum, break of 1366.05 should send gold to 61.8% projection of 1236.66 to 1366.05 from 1319.82 at 1399.78, which is close to 1400 handle.
However, we’d pointed this out before, and would like to reiterate this point again. There are two resistance levels to overcome from a longer term point of view. Firstly, that’s 1375.15, 2016 high. Secondly, that 38.2% retracement of 1920.94 (2011 high) to 1046.54 (2015 low) at 1380.56. This 1375/80 zone is the real test for gold ahead.
