Last night we pointed out the crucial moment that is at hand for gold and highlighted the importance of gold achieving a breakout above resistance within a couple of days. Within less than 24 hours gold delivered:
GLD (Daily)
This breakout is made more significant by the fact that futures speculators’ positioning remains highly supportive of additional upside and we still have at least another couple of weeks left in one of the most seasonally bullish times of the year for gold:
For large & small speculators to even move to an average net positioning in gold futures we could see 40,000-50,000 of net buying ($5 billion notional).
The falling 200-day moving average and previous support near $1130-$1140 (~109 on GLD) is a reasonable upside target for the current rally. Meanwhile, $1080 should now become support.