Is gold ready for an uptrend renewal?

The past few trading sessions were ‘boring’ for gold. The precious metal has been consolidating within a tight range after hitting a multi-month high of $1,325 on January 31 (see Featured Chart). Earlier, I pencilled in a near-term target of $1,320 (here). That has been hit.

Technically gold’s medium-term uptrend remains intact. First, prices are staying above the $1,300 key round number level, formerly a resistance now converted into support. Second, its recent consolidation is in line with the prior pullbacks, ie $15-18 range. With this uptrend consistency in mind, wait patiently for gold’s uptrend to renew but hold positions with trailing stops.

Interestingly, Palladium is creeping up. Its climactic upward acceleration earlier this year hadĀ failed to damage the long-term uptrend. Prices are slowly – but surely – challenging its multi-year highs near $1,440 again (see below). The consistency of its upward trajectory suggests a potential upside breakout. This time, the target is $1500.

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