Comex Gold (GC)
Gold’s pull back from 1025.8 extended further to as low as 985.5 last week and further decline could still be seen to 983.2 support and below. Nevertheless, downside is expected to be contained by 61.8% retracement of 931.3 to 1025.8 at 967.4 and bring rebound. Above 1001 minor resistance will flip intraday bias back to the upside for retesting 1025.8 high. Nevertheless, note that 1033.9 is needed to be firmly taken out to confirm upside momentum. Otherwise, we’d expected more sideway trading below 1033.9 in near term.
In the bigger picture, rise from 681 is tentatively treated as resumption of long term up trend. Sustained break of 1033.9 high will confirm this case and should target 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 next. While some consolidations might be seen in near term before decisive break of 1033.9, downside should be contained well above 931.3 support and bring rally resumption. However, note that a break of 931.3 dampen the bullish view and suggest that rise from 681 has completed. This will in turn indicate that such rise is merely part of the consolidation pattern that started at 1033.9.
In the long term picture, long term rally from 1999 low of 253 turned into consolidation after completing a five wave sequence to 1033.9 in 2008. Such consolidation from 1033.9 should have completed in form of expanding triangle to 681 already and rise from there is tentatively treated as resumption of the long term up trend. Sustained break of 1033.9 should confirm this case and target 61.8% projection of 253 to 1033.9 from 681 at 1160 and then 100% projection at 1460 level.
Comex Gold Continuous Contract 4 Hours Chart
Comex Gold Continuous Contract Daily Chart
Comex Gold Continuous Contract Weekly Chart
Comex Gold Continuous Contract Monthly Chart
