Gold has been under quiet accumulation since last August, as shown on the following daily chart.
The moving averages formed a new bullish Golden Cross several days ago. The RSI and MACD indicators are in uptrend, the RSI is still above 50.00, and the STOCH has just made a bullish crossover.
Price on the following daily ratio chart of GOLD versus its Volatility Index (GOLD:GVZ) has just broken above its near-term major resistance around the 120.00 level.
Both the MACD and PMO indicators have put in a higher swing high, while the RSI has yet to do the same; however, it’s still above the 50.00 level.
Should the ratio price remain above 120.00 and continue its rally, I’d like to see the RSI also make a new swing high. If that scenario occurs, there’s a very good chance that GOLD could explode much higher in the days/weeks ahead. Near-term minor price resistance is around the 1360 level, followed by 1400 and 1550 major resistance, as shown on the weekly chart below.
