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Gold Price Breaking Out of An Ascending Triangle – More Upside Ahead

The price of gold had just broke higher after it managed to push through the horizontal resistance of an ascending triangle. The market remains bullish as the measured move points to higher levels.

Inflation is one worry these days, as we see the commodity prices rising to record highs. Copper, food inflation, lumber, corn – all push to new highs. Lumber alone is up over 530% in the last twelve months, telling us how much consumers fear inflation. Housing prices are at levels not seen since 2006.

All these – real estate, commodities – are alternative investments, typically used as a hedge against inflation. Because the Fed is not worried about inflation (yet), the fear is that the Fed plans to stay behind the curve and many are wondering if it can stem inflation once it exceeds the two percent target.

Gold is the typical hedge against inflation, and the bounce from below $1,700 is not surprising. Now that it regained the $1,800 level, the only question ahead is where this run will end?

Gold Price Technical Analysis

The technical picture shows a bullish breakout after an ascending triangle ended. We may also talk here about a pennant formation. Bulls may want to stay on the long side with a target at $1,875 and a stop-loss at the last higher low.

Gold Price Forecast

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