However, it has formed a bullish pennant after Friday's move up from $1180 to $1270. This formation has its apex at $1249 and could break out from about $1250 if traders chose to do so.
I have noted that the current resistance around $1250 to $1260 is equal to the peak of gold before Quantitative Easing Round 2 (QE2) in mid-2010, which was at $1266.
This means that the inflationary effects of QE2 and QE3 have been erased as far as gold price is concerned. All gone. Same for silver, that was at about $18 at the time. I don't know if this makes the case for a price low that was set at $1180 gold and $18 ssilver last week. Maybe they could still overshoot to the downside? The 3 Peakjs and a Domed House pattern on gold has almost entirely been retraced too (target for that wass $1155).