Gold clears triangle resistance

The outlook looks increasingly positive with the focus next on 656.20 and 658.91.

Gold has continued to strengthen and has recently cleared key triangle resistance at the 640.80 level.

This has also resulted in a break of resistance at 645.00, the Jan 3 high.

With momentum conditions continuing to provide a positive backdrop, further gains are favoured with the focus now on 656.20, the Aug 2, 2006 high.

A break of this level would pave the way for a climb towards 656.20, Aug 2 high where a break would open 676.35, the July 17 high.

Support has been defined at 640.89, the former triangle resistance and this would be expected to hold near-term.

Below this level, support is at 633.70, the Jan 23 low.