Gold Miners Breakout

Gold broke out firmly and on volume on the back of a weak dollar yesterday. Take a look at the XAU index below. The trend line represents the 5-year trend, which was temporarily breached. The breakout yesterday puts the price of gold mining stocks above the basing inverted head and shoulders-type pattern that had been formulating just above the long term trend. The two year correction that gold had been in may now be at its end and the next leg up has a very good chance of starting from this level.