Gold sector is on the verge of a breakout

Gold sector is on the verge of a breakout

The first week of trading, since 1 January, has seen a good recovery in the gold price. Maybe the selldown has run its course and we are set for a climbing gold price over the next few months. That scenario is more likely than an assault on US$1,100/oz given the increasing levels of international political risk that comes with the shift away from the left to the right, with Trump leading the charge.
The strength in the gold equities last week suggests that the market agrees with the preceding comments, while the weakness in the A$ will be having a positive impact on the bottom line of gold stocks. Many of the leading gold stocks have rallied strongly to meet resistance lines and in some cases they have breached them. Right through the the gold sector it looks like we are about to have a breakout, which would be a major buy signal. However, it will take a few more days to confirm this development.