After last week’s wild action in gold, the metal now appears ready to run. The Fed’s testimony did nothing to derail the underlying strength in the yellow metal, and all signs point to a big run to the upside, which should take out the recent highs.
Since the middle of June, with all the wild action, gold has really gone nowhere. However, the recent action suggests that the consolidation pattern should end and a breakout higher is in the cards.
Gold is seeing a repeat of the patterns in early May and early June, both leading to big rallies. I don’t expect this time to be different and gold should be headed to $1,500. There appears to be a lot of gold bulls waiting to jump in and it would be no surprise to see the break out sooner than later.
KEFI Minerals plc (LON:KEFI) is an exploration and development company focussed on gold and copper deposits, primarily in the highly prospective Arabian-Nubian Shield.