The SPDR Gold Shares (GLD) gapped up this morning, and prices have exploded to the upside, above the January-April resistance line at 111.50 and above that prior rally peak at 112.18 from March 3. Gold prices certainly had to be positively affected by traders' anticipation of a strong 10-year T-note auction. We discussed gold in detail last night in our member Webinar and our expected upside. The ability of the GLD to sustain above 112.18 is very important now from a technical perspective because it will confirm that the price structure has emerged from its Dec 3 to April 7 (4-month) bullish consolidation area, and therefore likely is in the midst of a new upleg that should climb towards a revisit of the December high at 119.54.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.