There's no shortage of catalysts pushing gold prices higher, but now gold bugs have another…
A technical analysis of the chart depicting gold's rocky ride over the past nine months shows that gold prices have only just begun to break out to the upside.
Take a look…
"I like everything about this chart, and I like everything in the macro technical backdrop," Richard Ross, the Global Technical Strategist for Auerbach Grayson, told CNBC last week.
Ross noted that both the triangle and head-and-shoulders patterns in the gold price chart point to a strong bounce.
"If we can take out $1,350, which I think we do, we trade at $1,476," Ross said.
Helped by a jittery stock market, the price of gold got the push it needed Thursday when it shot up 2.06% to $1,360.90.
"The $1,350 level acted as support in mid-April and again in mid-May," said Money Morning Resource Specialist Peter Krauth. "If we can rise above that level and stay there, $1,350 is likely to become support once again."
It was only at the end of June that gold prices dipped below $1,200. Despite the pessimism back then, gold has climbed 13.5% in the weeks since.
Now investors can use the stair-step down right side of this gold price chart as a guide to where the yellow metal is going next.
Here's Krauth's take.
"After $1,350, the next intermediate target is around $1,420," Krauth said. "Beyond that level, I agree that around $1,480 is the following target. But the biggest prize will be $1,550, which also acted as support from mid-February all the way to mid-April."
Abigail Doolittle of the Seaport Group also told CNBC last week that the message of this gold prices chart is unequivocally positive for the yellow metal.
"Gold is going higher from here," said Doolittle. "I have a target of $1,488… Above $1,359 you're just going to see gold rocket higher in my view."
Gold Prices Have Plenty of Catalysts Now
About the Author
David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.
Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.
Dave has a BA in English and Mass Communications from Loyola University Maryland.