Yesterday’s apparent Yellen un-taper-driven strength in gold broke some key technical levels and Goldman Sachs sees upside.
Via Goldman Sachs,
Gold has finally spiked higher above notable pivot resistance 1,268-1,279 where the market had stalled since late-January.
The area encompasses a number of previous highs/lows since Aug. ’13 as well as the 100-dma. This has opened up risks to the 200-dma at 1,306).
To put things into context, the market has not been above this particular moving average since Feb. 8th last year (just over a year ago).
In short, it will be a very important level to watch how price action develops around it.