Gold (CME continuous contract) is up 11 straight and 15 of the last 16 trading sessions. The winning streak in itself isn't that significant (a winning streak alone doesn't tell one about the magnitude of the move), however, the current winning streak is of a similar character to price action which we saw during the bull market years of 2010/2011.
Persistently overbought conditions are characteristic of bull markets and similar to what we have seen in the major equity indices in recent years, 8+ session win streaks can occur regularly throughout the strongest uptrends. Gold is now in a confirmed uptrend and pullbacks should be seen as buying opportunities.
There is no doubt that US dollar weakness has been the primary driver of the recent gold rally which makes the chart of gold priced in euros especially important:
Gold in euro terms (Daily - 2 Year)
A breakout above resistance near 1,110 euros/oz would offer confirmation that gold is also in a confirmed breakout in euro terms.
As I mentioned last week some short term consolidation/pullback is to be expected over the next few days, however, gold is looking very good on multiple time-frames and with potentially $200+ of upside (to fill the April 2013 gap at $1560.50) vs. less than $50 of downside (major support at ~$1280) the risk/reward is still very attractive even after the recent ~7% rally.
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