Gold breaks the resistance

The outlook looks increasingly positive with the focus next on 676.35 following today's break of 656.20. As we mentioned earlier today of chances for it to break, and to initiate a buy order.

Gold has confirmed an important break today clearing resistance at 656.20, the Aug 2, 2006 high.

The break of this level confirms a resumption of the uptrend and paves the way for gains towards 676.35, the July 17, 2006 high.

Note too that a potential channel base currently lies at 661.30.

Momentum conditions continue to provide a positive backdrop and have also moved back into bull mode supporting the outlook for further upside.

Support has been defined at 641.10, the Jan 30 low where a break is required to undermine the current trend.