Upside Price Projections for Gold

Based on W.D. Gann

Gold futures on the Comex division of the New York Mercantile Exchange on Wednesday notched another fresh all-time record high of $1,183.20 an ounce, basis December futures. From a longer-term perspective, gold prices have been trending higher since the February 2001 low of $255.00 an ounce, basis nearby futures. There are no longer-term or shorter-term technical signals to begin to suggest a market top is close at hand in the gold futures market. With the precious yellow metal now well into uncharted territory, traders are wondering what are the next major upside technical price objectives.

The work of legendary trader/analyst W.D. Gann shows strong technical support and resistance levels for markets tend to be at major round numbers. In the case of nearby gold futures the round numbers producing overhead chart resistance are presently located at $1,200 and then at $1,300.00 an ounce. Based upon Gann's work with 45-degree angles overlaid on price charts--called Gann angles--the monthly continuation chart for nearby Comex gold futures shows the next major upside price projections for gold futures at $1,300, at $1,750 and then at $2,100 an ounce. Stay tuned! Jim Wyckoff