After consolidating between $1310 and $1330 for the past three weeks gold has posted an impressive upside breakout this morning:

Click to enlarge

August Gold Futures (4-hour)


August Gold Futures (15-minute)


The big nut to crack still lies in the $1400 area, which represents the neckline of the large inverse head & shoulders bottom:



A few links we are reading this morning:

WSJ - Fed Has Little Uncertainty, Despite Forecasting Misses

FT - Fears over Portuguese bank Espírito Santo trigger Europe sell-off

NYTDeath Toll Rises in Gaza, as Hamas Hits Deeper in Israel