Gold Could Be Setup For A Breakout

Gold futures have been steadily creeping higher even though they are in a consolidation pattern.  Around 11:30 on Wednesday, gold futures are trading about $20 higher at $976 an ounce.    It would be nice to see this market test the $1,000 level, which has been a major resistance level for gold prices.

Gold could be getting support from the recent declines in U.S. equity and world equity markets.  Investors could be moving some assets out of stocks and into gold.  If the gold market can test the $1,000 level and break through, this market could see another strong move higher.  A failure at that level could cause serious discouragement for the gold bulls and prices could retreat quickly.