As we are now officially kicking off a holiday week, actually two with New Years coming up, gold is trying to break above an important threshold. Not an ideal time for this to happen, but if it comes with some push then perhaps as the calendar flips to 2020 it will gain meaning.
Gold Spot if a breakout can hold, the 1524/1580 zone from the 2011/12 topping process will come into play. A break beyond 1580 could have gold rallying sharply higher in 2020.
The threshold in question is the top-side trend-line of the bull-flag that began its development back after gold peaked in September. The construction of this bullish pattern has meant gold generally digested the rally from earlier in the year with the end result pointed towards a surge higher again.
Whether that is indeed beginning now or not, we shall see. For starters, today’s poke above the trend-line needs to also take price above 1487 and see price close firmly outside of the pattern, then further that along with a weekly close above too. So, there is work yet to be done.
