Gold has a pennant at a key level of resistance which could break higher.

Gold is developing a pennant/triangle formation on the daily chart near the 61.8% retracement. The daily RSI has spent the last two weeks consolidating and working off the overbought conditions which is a sign that it could be setting up for another move higher. Above the $1300 level would be quite bullish with the next target being the 161.8% extension of the triangle at $1312.

Gold Bullish Pennant

Blake Morrow