Is Gold Ready For Another Push Higher?

Gold has been very nice to us recently. It is actually acting suspiciously well. In my last post I made a speculation how gold could consolidate in an ascending triangle pattern and that's exactly what seems to be happening right now. Yesterday's drop was obviously heavily bought and today we're seeing a nice rebound. However, I think gold is not quite ready for a breakout to new highs yet. The pattern is still too obvious. Another shakeout below the trendline or even below the last minor swing could be enough to shake off all the remaining weak holders which should free the way for a parabolic top.

Keep in mind that gold rarely obeys technical patterns. It simply cannot be traded based on them. As long as we don't see any big sell-off day on GLD or a violation of the last major swing, I think every down move is a shakout and a buy opportunity. I'm setting a buy signal on gold in expectation of a breakout.