Gold looks positive leading into the US session

It has been a good day for precious metals so far with gold pushing just over 1% higher and silver advancing 1.67%. The yellow metal has broken out of the aforementioned wave high at $1898 per ounce and broken through the $1900 figure. Now the next sicky point will be $1920 marked by the blue horizontal line above the current price. The break of the trendline is a great sign but the price does often come back to retest a trendline break so be aware of that. Of there is a break of the $1920 line the next target resistance on the upside is at the black line of $1973.59. A move above this level could mean the 2K psychological level is next and the bulls we be back in charge.

Silver is also looking bullish but has stopped at a tougher resistance point. The horizontal line at $24.51 seems to be a sticky area but a break beyond there could be significant. The next upside target would be the main consolidation low of $26.08 per ounce. This level looks strong as there has been four key price touches on this chart alone. If the market is to reverse then the trendline would be the next support followed by the previous wave low support at $22.85 per ounce. 

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