It appears gold is finally breaking out of its pennant pattern on what seems to be fairly strong volume. With the price of gold closing yesterday above falling resistance, we also see it has hit the resistance on RSI and every so slightly broke past the top trendline of the channel I’ve drawn on the On Balance Volume. From here we will be watching if original resistance trendline will become support on any future weakness.
One important note to keep in the back of your mind when evaluating commodities like gold, is the upcoming FOMC meeting. If the Fed does not give any additional hints or announcements of further QE, gold could see some weakness on the lack of additional easing..Disclosure page for full disclaimer. Connect with Andrew on Google+.