So the required catalyst to rudely awaken Gold from its nap came from a Portuguese Bank. Now it is a question of how much of a concern investors take this to see gold hit our next bullish target of $1355.
With Gold ranging for so long I did wonder if Gold bulls would become increasingly nervous, resulting in the dumping of the precious metal driven by frustration during a quiet market. Well we did eventually see the bullish breakout from the sideways. Breaking up through the $1341 target during intraday trading, Gold closed below this level but well above $1330 support. As long as this level holds then the bias is for direct gains towards $1350 and $1355.
Those who follow the COTS positioning may have noticed that as of last week Gold bulls were at their highest Net Long ratio this year, whilst the metal continued to trade sideways. Whilst it could not predict what was to come out of Europe, it does show that money was creeping into a sideways price movement and shorts were being covered.
There is potential here for a bullish channel / trendline, however this is yet to be confirmed with a 3rd touch. However the key level of support is obvious enough to spot so I will consider buying opportunities above this level, with a retracement towards the trendline acting as an extra confluence if confirmed.