Gold is Poised for a Major Breakout This Week

By John Galt
May 8, 2016 08:30 ET

After weeks of consolidation, the breakout and weekly close above the key $1280 support level on a weekly basis indicates that monetary stresses in Asia, Europe, and North America are becoming more severe and that this new move in gold as a flight to safety is indeed being validated with each leg up.

05_08_GOLD_WEEKLYjgfla

The weekly chart also confirms the volume supporting this move and as illustrated in the daily chart below, despite attempts to sell the monetary metal below support, there are enough global buyers to push prices higher; in fact, much higher in this particular move:

05_08_GOLD_DAILY1YRjgfla

Considering the disarray at the United States Federal Reserve, the threat of Brexit, disconcerting news emerging from the PIIGS again, and China now piling debt up by some estimates to over 297% of GDP, gold is looking like a particularly smart and safe asset to acquire.

Silver will not be too far behind, trust me.

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