Gold Consolidation Period Resolved To The Upside

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures were trading sharply higher by $16.70 at $1124.40 in Wednesday's session. After being in a trading range from $1072.80 to $1109.30 for 15 consecutive sessions, the consolidation period was resolved to the upside in Monday's session when it traded up to $119.10 before falling back to settle at $1107.70.

Off a flat open, it dipped and found support ahead of the psychological support level of $1100, only reaching $1101.10 before reversing course. So far, the issue has rallied as high as $1124.60 and is currently trading at the level.

If the rally continues, the next identifiable minor resistance level may be at its July 20 high ($1133) and there may be additional resistance at its July 17 high ($1145).

Market Vectors Gold Miners ETF GDX was trading at $15.32, up $0.80.

SPDR Gold Trust (ETF) GLD was trading at $107.71, up $1.45.