Gold has enjoyed a nice run so far this year. Technicians believe gold may soon enjoy another run up. Take a look at this graph:
Technicians see that the price approached the red line of resistance once last year and once again this year. Each time it approaches that line, it is more likely to break that line than the time before.
I'm not inclined to believe that, as gold is a hedge against inflation, which doesn't exist. Or, gold is a safe refuge during a crisis, like a major war. Or, gold is simply a 5% part of the normal asset allocation in a portfolio. I don't see any reason for another bull run, and I'm not buying any gold at this point. Of course, I'll always keep an eye on this chart.
