Gold breakout is showing legs
Gold is up $12 today to $1861. It rose as high as $1868 yesterday and that's resistance but what's more important is what's below.
The level it broke after yesterday's CPI report was a triple top at $1834. It retested as low as $1841 but is back near the highs as commodities perk up.
Gold has been trading off bonds but with the US fixed income market closed today, the gold bugs are flying blind. That said, deeply negative real returns in bonds and high recent volatility are good cases for gold. There's also a seasonal tailwind and this breakout.
