GOLD Pressures Channel Resistance At 604.55

Gold has continued to strengthen and is pressuring channel resistance at 604.55.

Momentum conditions are still fairly neutral so it will be key to see whether the metal can follow through on the break of the channel to avoid any concern of a false break.

Continued gains would pave the way for strength towards 607.01 initially, Sep 28 high where a break would pave the way for 618.24. The latter level is the 50% retracement of the 676.35 to 560.13 decline.

Key support has now been defined at 573.50 where a break would instead confirm a return to weakness. Initial support lies at 592.20, the Oct 27 low.

A clear break of the channel would confirm potential for 618.24 - maintain cautiosly bullish outlook.