Gold Head and Shoulders breakout

Gold prices broke through a long-term bearish trendline on Friday, and we saw a positive reaction in the market when this new support was tested on Monday. With the break above $1220, we may see gold rally through its December highs ($1237), which would complete a head and shoulders pattern that took form between September and December. As it stands, gold reached $1240 during Asian trading this morning, so watch for the break above this level later today or tomorrow to confirm a bullish breakout. Possible targets are at $1260 and $1290/1300 if this break occurs.