NEW YORK ( AppreciateGold.com) -- Gold has finally broken out if its recent range Tuesday. Gold futures for April delivery are trading up $15.10 as of this writing at $1593.20 per ounce.
After trading in a range from $1,559ish to $1,585ish, gold has finally chosen a near-term direction after breaching overhead resistance at $1,585. This breach has clearly triggered numerous buy-stops thus driving price higher.
The bears were simply not able to extend the recent swing lows in gold, and thus the stage is now set for some potential upside as shorts are forced to cover. $1,619ish on the daily chart looks to be the next immediate target. A close above the psychologically important $1,600 level may attract further buying interest as well adding fuel to the rally.
Gold bulls will be watching the U.S. Dollar Index (USD) for any signs of weakness. The persistent strength in the greenback has helped keep a lid on gold prices but the euro currency thus far has not been able to make a meaningful break below the key 1.30 level.Source: QST One has to question how much more the dollar may have in the tank. Should some weakness set in that would likely also fuel a rally in bullion prices. Price action thus far today in outside markets has a bit of a "risk-off" smell to it as bonds and notes trade higher and the S&P 500 futures are trading slightly lower. Follow @appreciategold Written by Matt Zeman, a broker and blogger at www.appreciategold.com