Gold signals that uptrend is intact after break of Tuesday's high

Technical Analysis

Author: Adam Button | gold

Gold technical analysis

Gold is up $17 to $1225 in the largest gain in a week.

After rallying for 10 straight days, culminating in a blow-off to $1263 last Thursday, gold retraced in a textbook technical correction.

It found support almost directly at the October low of $1191.

The fresh buying signal today comes from the break of $1217, which was Tuesday's high. That indicates the retracement and consolidation phase is complete. It might be a choppy trip higher but I suspect we will get a retest of $1263 or more.

What's especially impressive to me is that the broader environment today doesn't scream 'buy gold' like it did last week when risk assets were getting beaten up.

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