After dipping ~2% following Tuesday’s brief rally above $1,330 gold quickly found its footing on the final day of August and finished the month in stellar fashion:
Gold surged more than $50/ounce during August on record high monthly futures trading volume. In addition, gold broke out above multiple noteworthy technical barriers: Including the $1300 level which had capped previous rallies in 2017, and a clean breakout above the downtrend line drawn from the 2011 peak.
Gold is suddenly working on multiple time frames, including the weekly and monthly time frames which have been under repair for quite some time. Moreover, sentiment is far from over-bullish which leads me to believe there could be more upside over the coming weeks before the next significant (>5%) correction takes place.
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