By Roberto Pedone

BALTIMORE ( Stockpickr) -- Is gold about to break out to new highs? That's what many investors are wondering as the action in the yellow metal starts to heat up as we approach a very strong seasonable period for this commodity.

September has often times marked the seasonal sweet spot for gold. Since 1971, gold has seen an average gain of 3% in September. Even better, the gold mining stocks as measured by the AMEX Gold BUGS Index ( HUI) has risen an average of 8% in the month of September since the official launch of the index in 1996.

Market players would be well served to monitor some of the top gold ETFs for breakout action as we move closer towards September. Two that I would recommended are the SPDR Gold Trust ( GOLD) and the Market Vectors Gold Miners ETF ( GDX).

The GLD mirrors the actual price of gold bullion and this ETF will breakout above $123.50 a share. With the ETF currently trading around $119, investors could get in now and anticipate the breakout. Just remember to have stops in place in case it doesn't happen.

For the GDX, the near-term breakout will happen if this ETF can get above $55 a share. The all-time high on GDX sits at around $56.25, so a true breakout to new highs won't happen until that price is breached to the upside. Again, with this ETF currently trading at around $50.50 a share, you could look to buy it now and anticipate another bullish September for gold.

A breakout occurs when a stock makes a move through a significant level of support or resistance, which is usually followed by heavy volume and increased volatility. Wall Street players love to see an upside breakout because it demonstrates strength in the underlying asset as the price breaks above a level of previous resistance. An upside breakout can also take a stock to new highs, which will generate a lot of interest as the stock shows up on sophisticated software that scans for this type of action.

Here 's a look at a number of stocks that are already breaking out, or could be setting up to become solid breakout candidates.

If you liked this article you might like

Cord Cutters Aren't Just Leaving Pay-TV Because of Price

Netflix Shares Could Rise 16% on Big Boost in Subscribers

Elisabeth Moss Isn't the Only Handmaid's Tale Actress Packing Serious Star Power

Comcast Dodges Big Social, Moves Watchable In-House

Microsoft's New Xbox One X Shows It's Done Trying to Please Everyone