Gold - onwards and upwards

Gold was trading at a fresh all-time intra-day high this morning, having posted a record close last night. It is closing in on its next key upside target of $2,800, having broken above $2,700 less than a fortnight ago. The chart continues to look constructive from a bullish perspective. The daily MACD indicates that momentum remains to the upside, while below the overbought levels seen at the end of September. Having said that, it looks as if there’s less room overhead when compared to mid-October. The moving averages are all stacked up in bullish fashion, with the 50-day below the 20-day, and the 100-day comfortably below both. The last time the three converged was in mid-February just before the start of this leg of the rally when gold was trading below $2,000 per ounce. So, it all looks tickety-boo for the bulls, and that means also it’s time to be extremely cautious. The silver chart is very messy in comparison. From a bullish perspective, the longer that prices hold above $34 per ounce the better. But the market has yet to take off dramatically which is a feature of a full-blown silver bull market.