Gold Daily Technical Outlook

Oil N' Gold Team from Oil N' Gold at 02/08/10

Comex Gold (GC)

Gold's recovery continued today and break of 1070 minor resistance indicates that an intraday low is in place at 1044.5. Bias is turned neutral and some more consolidation would now be seen. Nevertheless, upside is expected to be limited well below 1126.4 resistance and bring fall resumption Below 1044.5 will target 1000 psychological level next.

In the bigger picture, gold has made a medium term top at 1227.5 and correction from there is likely still in progress to 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level. However, we'd expect such correction to be contained there at around 1000 psychological level and bring resumption of the whole up trend from 2008 low of 681. A break above 1126.4 resistance will indicate that such correction has completed and will turn outlook bullish for another high above 1227.5. However, note that sustained trading below 1000 will dampen our view and put 931.3 key structural support into focus.

Comex Gold Continuous Contract 4 Hours and Daily Chart