Gold continues carving a swath into all-time record high territory, now a stone's throw from the much anticipated $1,500 per ounce level. The surging price reflects mounting concerns over stability in the Middle East and North Africa, which have historically been very heavy purchasers of precious metals as a safe haven asset.
Gold has established a meaningful support level just above the $1,425 per ounce range on the chart. This is near the high set before the correction which occurred near the start of the year, and recent price action has retested and held the level.
Now climbing the support trend line of a Channel Up chart pattern, the rising price appears to be not only sustainable at these levels, but poised for another push higher.
Provided that the $1,430 trend line support holds, the pattern suggests a rally back to the upper end of the channel, with a test of a new high near $1,450 per ounce. If achieved, an upside breakout from that level would be viewed as extremely bullish.
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