Gold is currently at a major long-term technical key breakout point that dates back to 2011 when it peaked at an all-time nominal high of $1,900 per oz. When gold last tested its long-term technical key breakout point in July 2016 when it rose to a four-year high of $1,367.10 per oz, it was trading for 15.49% above its 200-day moving average and ran out of steam.
One week ago, gold once again broke through its 200-day moving average of $1,258 per oz and has finished higher every day since, settling today at $1,291.70 per oz. If gold once again reaches a level of 15.49% above its 200-day moving average, we could see it make a short-term run to $1,452.86 per oz.
Gold only needs to rise 8.7% above its 200-day moving average to surpass its four-year high of $1,367.10 per oz!