Gold breakout - it looks like gold futures zoomed up to around 1398 and then closed at 1381 (!) We'll see how it trades tomorrow, but it appears to have obliterated the key resistance level at 1350-65.
So.. this breakout looks like it could be a major turning point for gold. The ascending triangle took 3 years to form, and the 1350-65 resistance was tested numerous times in 2016, 2017, 2018 (and even in 2014), but was thrown back each time.
Looks like it finally made it thru, and the breakout could confirm a new uptrend, in which case the TA rules for gold will have officially changed to 'buy, and buy the dips'.
One caveat is that there will likely be a re-test of 1350-65 (now support), and ultimately this will have to hold. It could drop below for a while, but ultimately has to get above and stay above or the breakout would be nullified. So while aggressive investors may pile in long now, conservative investors may wait for the successful re-test before going long.
Pretty exciting though, since TA/chart mavens have been waiting for this moment for years. We'll also get to see if the Fed's suppression mechanism kicks in, which is possible. But one reason why the Fedsters might allow gold to rise right now is that it will give the impression of rising inflation, which is something they've been desperate to engineer for a long time. The Fed's worst nightmare is deflation, and they've been unable to generate even their 2% inflation goal despite years of ZIRP and QE. Tax cuts and deficit spending haven't done the trick either (at least not yet), so letting gold rise could create an inflationary mindset.
