Gold has been in this downward channel trend since the highs in March and were able to breakout of the range after the lighter than expected CPI number last week. The market had been trying to breakout above trendline resistance and the 50-day moving average, and after having support tested 3 times near 1623, and the CPI news last week, there has been a nice breakout. There is some overhead resistance with the 200-day moving average, and the market is in overbought territory, so keep your eye on the dollar and bond markets as a slight downturn may come if we test this resistance level.