Last week, gold prices broke above the 50-day moving average on the daily chart, closing the week at $1,780.20 per ounce. Gold prices are continuing their upward trend, which began when they broke above the resistance line formed after the “double bottom” formation. This continued rise was fueled by last Tuesday’s consumer price index report from the government, which showed the annual inflation rate rose to 2.6% in March from 1.7%. Jason Teed, director of research at Flexible Plan and the co-portfolio manager of the Flexible Plan–subadvised Gold Bullion Strategy Fund (QGLDX) , told MarketWatch that the reading “came in slightly over expectations, an indication that the U.S. economy is heating up a bit more than expected.” Teed pointed out that rising gasoline prices are the source of most of the inflation pressure and that core inflation was more muted, adding, “These changes are largely expected to be temporary by economists leading to an unadjusted stance.” How is this news affecting the price of gold? Teed says, “Gold is responding positively …, but short-term price movements in the metal are not an indication of long-term trends.” Rick Andrews is president of Avant Capital Management.