Next Target - USD1800 per ounce

Feb 22—April Comex gold futures punched above a key resistance ceiling in midday action Wednesday, opening the door for a run to the $1,800 per ounce level.

BULLISH CHART OUTLOOK
Technical chart factors look strong for gold futures. The 20-day moving average turned above the 50-day several weeks ago, triggering a bullish moving average crossover buy signal, which remains intact.

The modest consolidation/correction in early February failed to take out any significant technical support levels, leaving the medium term technical uptrend firmly intact.

The recent consolidation allowed the 9-day relative strength index (RSI) to correct its overbought conditions, leaving gold bulls well positioned for a fresh run higher.

UPSIDE TARGET
The next key upside chart target lies at $1,808 per ounce the November 8 daily high.
The trend remains your friend in the gold market.
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Figure 1: Daily April Gold Chart, courtesy of Interactive Data