- Gold has backed off from multi-month highs seen early today.
- The bullish breakout confirmed on Monday remains valid.
Gold is currently trading near $1,938 per ounce, representing a 0.20% decline on the day. Prices clocked a high of $1,946 early today. That was the highest level since Nov. 9.
The metal has pulled back from two-month highs in a move typical to bull breather seen following a major breakout.
Prices jumped over 2% on Monday, forming a bullish marubozu candle and confirming an upside break of the falling channel represented by trendlines connecting Aug. 7 and Nov. 9 highs and Sept. 24 and Nov. 30 lows.
Backed by an above-50 or bullish reading on the 14-day Relative Strength Index, the breakout has opened the doors for the Nov. 9 high of $1,965. The bias would remain bullish as long as prices remain above Monday’s low of $1,898.
Daily chart
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Trend: Bullish
Technical levels
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