There are three key features to look out for in this breakout in the gold price, which also happens to confirm our analysis back in February.
The first and most important feature on this chart is the breakout from the fan trend line pattern.
The second feature is the breakout confirmation from the Guppy Multiple Moving Average (GMMA) relationships; the long-term group has compressed and turned decisively upwards.
The third feature is the way price has remained above the critical resistance level near $1,200, using it instead as support point.
Gold is a proxy for the entire commodity complex and we see this behavior reflected in oil and silver charts.
The upside target for gold is now the historical resistance level near $1,340. This is the short-term target and the fan trend line breakout behavior suggests it could be hit quickly.