Daily Commodities Update: Gold

Gold futures closed Tuesday’s trading session well into new all-time record high territory, punching through the old top at $1,450 per ounce as the precious metals complex once again found strong speculative buying.

The run higher in the price of gold comes after a long, very well developed “Inverse Head & Shoulders” chart pattern formed near the upper end of the trading range. The Inverse Head & Shoulders set two swing high resistance points on the chart, both very near the $1,450 price level, to establish the pattern and set up the breakout signal.

The signal executed when Gold futures surged above this trend line, shown here on the 240-minute time interval, and the move came on very strong momentum with a solid close.

The forecast target from this breakout could prove useful for short term traders, as there is no previous market action at these price levels to establish support or resistance levels. The price projected from the Inverse Head & Shoulders completion implies an optimal target between $1,469 and $1,487 per ounce, which would likely bring a further push towards the psychological threshold price of $1,500 per ounce if achieved.

(Source: http://www.commoditiesmansion.com/general-commodities/daily-commodities-update-gold-2/)