Gold Takes Out Key Near-Term Resistance

This is what we discussed last Friday at 11:00 AM ET ($1293.69)

On one hand, spot GOLD seems to be spinning its wheels, getting no where fast.

On the other hand, when we step back and look at the larger pattern that has been developing for the past 4 weeks, well, perhaps there is something very constructive to see-- such as a meaningful accumulation pattern.

In fact, the price structure has carved out "concentric bottoms," or a smaller rounded base inside of a larger rounded base, that project considerably higher prices-- if spot GOLD can manage to hurdle and sustain above $1300.

If not, then on any weakness, GOLD must hold $1270-$1260 to avert imploding back towards a test of the June low at $1180.

What now?

Spot Gold has rocketed above its initial-resistance plateau at $1300, and has followed through to the upside with power as the potential off of the concentric bottoms starts to be realized.

The ability of spot Gold to hold above $1314/11 on any forthcoming weakness will be considered extremely constructive price action, and will increase the likelihood that the upmove is heading directly for $1350/55 next.