How far can gold run?

Gold added the better part of another one percent last night and its breakout is charging along at $1329 this morning:

At this stage the rally is a punt on Janet Yellen being forced to slow taper and the positive technicals of breaking through the 200DMA. In the event of a taper taper, gold will rally much further and harder but in the mean time, the rally will be tested by a return to decent weather in the US and technical resistance points. I asked Chris Weston to give us an updated technical chart on key levels with $1338, the 61.8 Fibonacci retracement, prominent:

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.