Gold Reaches Resistance at $1780
Gold is surging higher later in the session today having caught a gust of wind that took it all the way to major overhead resistance at $1780. The ability of the market to REMAIN ABOVE $1750 caught the attention of momentum based traders and that was all she wrote. Up it went taking the weak-handed shorts out of their positions until the bullion banks could regroup and start their selling again at $1780.
Bulls have their sights set on putting a handle of “18” in front of the gold price. The Central Bank pals – the bullion banks – are going to try to prevent that. If the bulls can keep gold above $1780, they should be able to take out the bullion banks.
Downside support now becomes the $1750 region.