Gold Tests Another Key Level

London (Feb 27)  We turned bullish on gold "again" January 17th. We cited several positive fundamental developments after having been bearish for several months. Gold (NYSEARCA:GLD) is coming up to a key level. A break higher will confirm a continued move higher.

Here's what we said January 17th:

"There is a window of opportunity for gold to start to perform. It appears to have bottomed. Inflation picking up is helping. Central banks soft-peddling tightening is another key element."

Here's the chart we showed at the time. We felt it went topside from a key longer term level.

We drew a line we found that acted as a key support/resistance over the last couple of years. You can see "key action" took place at this line. Breakouts and breakdowns followed through after passing this line both up and down.

On January 17th we pointed out that going topside of this key level was bullish especially with some fundamental drivers.

Source: ElazarAdvisors