Gold breaks out of consolidation pattern
I like gold but I hate a breakout on a holiday.
Gold is up $5.35 to$1327.05 today, narrowly climbing above the January 31 high of $1326.57. The rally marks a new high since April of last year.
Technically, it's a breakout from three weeks of consolidation in the $1300-$1326 range. The straightforward implication is a rally to the 2018 highs in the $1350/65 range.
Of course, it's never that easy. What complicates the move today is that it's coming in low liquidity on a US holiday. That raises a distinct possibility of a false breakout.
The playbook here is going to be to hold tight until New York returns tomorrow and wait-and-see if the break holds. At the same time, you can't ignore it if gold starts to runaway to the upside in a stronger sign that the breakout is confirmed
