December gold futures on Thursday hit a fresh six-week high as the bulls have regained solid upside near-term technical momentum. Prices are in a steep uptrend from the August low, and have tacked on almost $50 an ounce from the August low. The next major upside price objective for the gold bulls is to produce a close above strong technical and psychological resistance at the $701.00 level. If the bulls can see closes above $700.00 an ounce in the coming days, then that would give the bulls better upside technical momentum and also open the door to larger price gains.
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A drop back below solid chart support at the $680.00 level would provide the gold bears with some fresh downside technical momentum. All gold traders will continue to keep an eye on the value of the U.S. dollar versus the other major currencies. Any strong rebound in the greenback would find gold bulls again on the defensive. Stay tuned!–Jim
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