Gold Market Bulls Gain Fresh Upside Technical Momentum

February gold futures prices have rebounded from the December low as the new year gets under way. Recent price action on the daily bar chart has negated a steep downtrend line, while a fledgling uptrend line is now in place.

The gold market bulls have gained fresh upside technical momentum recently, as the U.S. dollar is again under selling pressure. If the greenback remains under selling pressure in the coming weeks, it's likely that gold futures prices will continue to work higher, including challenging the all-time high of $1,227.50, scored in early December. However, if the U.S. dollar index shows renewed price strength then it's very likely gold prices will again weaken. Trading action in the gold market the next week or so will be extra important and could set the tone for price movement in gold for the next several weeks. Stay tuned! Jim Wyckoff