Gold prices are very close to their strong resistance level at $1,350 – $1,380 per ounce.
source: Stockcharts.com
A thesis on a final breakout is supported by the physical demand. For example, the IAU ETF has added a large amount of gold in January up-to-date (465 thousand ounces):
source: Simple Digressions and IAU
On the other hand, the Gold/dollar index is lagging (the blue arrow) behind gold prices (the green arrow), which is a sign of a short-term correction coming:
source: Simple Digressions
Summarizing, we are at a pivotal point for gold. Although I opt for a short-term correction, I would not be surprised to see a big leg up in gold starting soon.
