GOLD (EUR/Ounce)

Gold is shining again… read the headlines over the weekend and today. I’ve updated metal charts in August and drew attention to possible strong breakouts. Now is the time for some long-term charts. This time I wanted to put Gold price in euros. The chart below is very powerful and gives a very important message. Since the beginning of 2009 strong uptrend formed a clear parallel trend channel and over the past year price formed a perfect symmetrical triangle. We are now seeing a clear breakout from a year-long consolidation range. If we are going to see the Euro strengthening in the next couple of weeks than Gold is going to outperform the Euro. Gold in euros is likely to start a new uptrend. This chart is telling us that yellow metal is breaking out of a medium/long-term consolidation range and price can target 1,500 levels. (please note that price scale is denominated in euro).