Gold Turning The Corner?

The gold futures are trading near 940 this morning, after breaking out of a 3-week bull flag pattern. The contract had dropped as low as 914 yesterday, shaking out traders after violating 50-day EMA support at 934. That level will probably be “in play” for the next few days, in response to this afternoon’s Fed decision.

This positive price action could mark the initial phase of a recovery that triggers the next assault on resistance at 1000. That level has held back gold since March 2008 but a major breakout is becoming more likely. In turn, we could see gold prices between 1500 and 1800 in the next year.