June gold futures on Wednesday morning popped to a fresh four-week high of $681.10, as bulls gained some fresh upside technical momentum. However, prices did quickly back off from the session high, and now $681.10 has become stiff overhead near-term technical resistance. A close near the session high on Wednesday would further encourage the bulls and suggest that price action is producing a bullish upside “breakout” from the recent sideways and choppy trading range on the daily bar chart.
The next upside price objective for the gold market bulls is to challenge major psychological resistance at $700 an ounce. The bears would gain some fresh downside near-term technical momentum by producing a close in June gold below solid chart support at $670.00 an ounce.
click on the chart to enlarge
Gold traders will continue to keep one eye on the crude oil market. This key “outside market” had seen solid price gains recently, but was trading lower Wednesday morning on news that Iran was preparing to release the U.K. sailors it had held captive for a couple weeks. If crude oil futures prices continue to sell off in the near term, then it will be difficult for gold market bulls to make much upside price headway.
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