“Gold has been building up a large space to consolidate
recent gains from the latter half of 2010,” said Adam Sarhan,
CEO of New York-based Sarhan Capital.
“The market is acting like a coil. As more and more
pressure is building up, gold will most likely break out and
close above its current base at $1,450 an ounce,” he said.
Sarhan said higher prices would follow as long as gold held
above $1,400 an ounce and above the key 50-day and 200-day
moving averages.
“On the downside though, if the 50-day moving average is
broken, and you see gold start falling hard, then all bullish
bets are off,” he said.