Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Breaks out of The Box
December 16, 2021 - (Gold Market Wire) - Gold has finally broken out of the Box formation which we described in our previous post. Almost four weeks hemmed in - we now have gotten "free". But as the chart shows, we now have the top of the channel to contend with.
A US Dollar sell off has been the catalyst for the rally, but the 50-day moving average and the channel top are further hurdles. Still, when we take yesterday's bar formation, long tail, drilling down followed by recovery and today's gap, we are getting some encouragement. Those who traded the Box have done o.k. There was some money to be had. Right now, we'd like to see a proper channel break-out at the end of the week to give us some confirmation. We won't chase here - but will see if the market can confirm on the close tomorrow.
Still - a welcome development, if a long time coming.