“A break higher should see good follow through for gold bulls”

With the price of gold climbing yesterday above the trading range that it had occupied for the past three months, several strategists have begun to forecast further gains ahead for the yellow metal.

This morning, TD Securities’ precious metals team wrote in its daily report to clients that “This is the first bit of bullish technicals that we have seen in gold for a while and it’s very constructive. This technical bullishness has spilled over into the European session this morning, as gold pips through its 200 DMA at 1643, and finally breaks the pattern of inside months that we have been witnessing of late.”

“For the first time in months, the market feels like challenging the upper end of our $1,530 – $1,650 range,” the firm added, “and a break higher should see good follow through for gold bulls.”

As for silver, TD Securities noted that “Silver, despite very good OTC selling over the past 2 days, rallied significantly and today in Europe the sellers appear to be exhausted. Technically, be wary of a potential double top at $29.88 but beyond that the market should trade towards long-term resistance at $31.30.”