Once again gold bears tried to force the yellow metal down and it appears, they have failed. Going into the FED testimony gold was under pressure and looked like it might violate support clearing the way for a breakdown. But, surprise! Gold held and rallied hard.

Since this latest rally in gold started, every time the sellers showed up, buyers defended their positions and overpowered the shorts. We have seen the same pattern in May, June and now July. Bears push hard only to leave disappointed.

As we have written may times before, all charts are the same, all patterns repeat themselves and the shortest time frame always resolves itself into the longest time frame. The trend is up, and the 1380-1390 level continues to hold. For now we are targeting 1500 and until the pattern changes up we go.

Todd Horwitz
Chief Strategist