Gold Bulls Still Have Technical Power

June Comex gold futures bulls have recently gained fresh upside near-term technical momentum. Prices on Monday hit a fresh four-month high of $1,170.00 an ounce. Prices are also in a nine-week-old uptrend on the daily bar chart. For June gold, shorter-term technical resistance is seen at Wednesday's high of $1,162.80, at this week's high of $1,170.70 and then at $1,175.00. Major psychological resistance is located at the $1,200.00 level. Shorter-term technical support is located at Wednesday's low of $1,151.00, at $1,146.60, at this week's low of $1,145.40 and then at $1,140.00.

From a longer-term perspective, an examination of the monthly continuation chart for nearby Comex gold futures shows a solid longer-term price uptrend remains firmly in place, which suggests that in the coming months, the path of least resistance for the precious yellow metal will remain sideways to higher. Stay tuned! Jim Wyckoff