Gold higher in third day of gains

Gold is back in a big way.

The selling in late November has now been erased with gold trading $30 higher to $1895. That's the best level since November 16.

The next level to watch is the $1900 figure, which also coincides with the Nov 16 intraday high. The daily chart shows a minor inverted head-and-shoulders pattern as he head into the bullish seasonals of Jan-Feb.

Gold higher in third day of gains

To really get gold back on track, it it will need to take out the November high of $1965 to halt the six-month period of lower highs.