Gold Breaks with Tradition of Seasonal Weakness Making Record-breaking Run

The gold market is typically quiet during the summer months so its recent breakout has caught a lot of people off guard. Gold is responding to the ongoing sovereign debt problems around the world and its ascent shows no sign of stopping.

As this chart shows, gold bounced decisively off short-term support (circled) and then climbed for eleven consecutive days, the longest such streak for 31 years.

The next key area to watch is $1,665 an ounce where the yellow metal will encounter overhead resistance.

 

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