The break is convincing in several respects:
1. Gold broke the previous high of $730.30 set on the 8th May'06.
2. The gold price rally was convincing in itself - up $9.75/oz
3. The gold price closed near its daily high
4. The gold price move is supported by strong fundamentals
Gold is already breaking out - was only a couple of months ago it was around the $645 mark - then the credit crunch hit, and now people are turning to gold for safety.
Gold is already breaking out. The fed-rate cut and the associated fear of inflation and inflationary expectations toghther with a weak dollar (thank you rate-cut) along with surging commodity prices (thank you weak dollar, thank you Ben) and the overall economic picture have helped to push gold prices higher.
Will Gold Break Out?
) along with surging commodity prices (thank you weak dollar, thank you Ben) and the overall economic picture have helped to push gold prices higher.
