In the early morning trade, December gold has finally broken out above major resistance and you are witnessing momentum buying take place with the shiny one currently trading at $1,519. New data has been coming out weak, which has heightened the possibility of another fed rate cut next week. Furthermore, the announcement of another British election next week has obviously added fuel to the broad base metals rally this morning. Traders and investors alike are speculating if a U.S./China resolution trade deal is reached, then China will come in and buy gold which will give more confidence to the bull camp.

If you take a clear look at the daily December gold chart, you’ll see that it broke above the resistance level that it’s been trading in over the last two months. If we keep it simple, the next two levels that the shiny one should try to retest is the September 24^th high and then the contact high of $1,566 back on September 4^th. I highlighted these levels below on my RJO Futures Pro daily December gold chart.