With the commodity sector continuing to slump led lower by oil, we had a refreshing change in pace with gold pushing up higher towards a break out territory.
We will have to see how gold follows through, and handles the likely consolidation or retracement at some point, to gauge whether this is truly 'something different' than we have been experiences in this precious metal bear market.
Silver moved higher as well, but was not showing the type of feistiness that we would expect to see in a precious metals breakout. This is not a big thing yet, as gold is clearly leading the way, with silver following.
IF gold can stick a close back in the old trading range above 1270 AND silver confirms with a breakout of its own, I would say its a new market trend. But not quite yet.
It was nice to see gold take out the 100 DMA which a number of traders watch, and run right up to the 130 DMA which is what I tend to watch. The 260 DMA is up around where I would feel more comfortable with a trend change call.
Still, no complaints on the change of pace for today.
Have a pleasant evening.
