Preamble
We recently penned an article entitled "Gold To Obliterate The $1350/Oz Resistance Level" and this has certainly happened as gold recently traded as high as $1,425/oz. We also said the following:
This resistance level needs to be obliterated with some gusto and gold needs to find the traction to take out the next resistance level before making new highs.
A lot depends now on monetary policy easing by the Federal Reserve which would weaken the dollar and due to its inverse relationship with gold, strengthen gold.
After six years in the doldrums