I've heard a lot about a supposed breakout from the 6-year downtrend in gold during the last few days with numerous articles and blogs posting a chart similar to this one:

While there is no doubt that gold is close to a potential key inflection point, I believe that the financial media has misrepresented (as often happens) the current technical picture for gold in an effort to get clicks from excited gold bugs. 

First of all, the above chart is linear (arithmetic) which can often cause a skew on longer time frames. Second, the "breakout" which is being purported is marginal at best and is not yet confirmed on a weekly closing basis. Finally, if we use a 10-year weekly log-scale chart the picture looks a bit different:

Gold (Weekly - 10 Year)

For me to get excited about any long term breakout I would need to see gold clear major support/resistance near ~$1310 on a weekly closing basis. Until then the yellow metal remains in a long term consolidation (coil) which is building energy within a narrowing range. 

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