Gold broke out of the triangle. What's next?
Gold price pushed significantly higher on the past week, hitting $1280 per ounce on Friday. Price broke out of the consolidative triangle even quicker than we expected. Next resistance lies at 1284.50 – March peak and the highest level since early 2015. Break higher will open the way to 1308 and potentially even higher. We could reach $1400 per ounce by the end of the year.
The yellow metal has already climbed by 16% since the beginning of the year as prospects of an immediate Federal Reserve rate hike are fading. We expect the US interest rate to remain unchanged until late 2016, and this scenario is supportive for gold. Next week watch the US NFP on Friday – weaker reading could push the price to new highs.