April gold futures on Wednesday notched a fresh seven-month high of $988.70 an ounce, on safe-haven buying interest amid heightened worldwide economic and financial market uncertainty. Gold prices are in a four-month-old uptrend from the October low of $689.70 an ounce. The next upside technical target for the powerful gold market bulls is the major psychological resistance level of $1,000.00 an ounce. Just above that price levels resides the contract high for April gold, at $1,005.30. Multiple closes above the key $1,000.00-an-ounce level would be another very bullish technical clue to suggest still more upside price pressure in the near term.
There is strong technical support for April gold located at the $940.00 area. Multiple closes below that chart level would provide the bears with some fresh near-term downside technical momentum to begin to suggest a market top is in place.
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The all-time record high for nearby Comex gold futures was scored in March of 2008, at $1,014.60 an ounce. Prior to this new high, the 1980 high of $873.00 an ounce, basis nearby gold futures, had held for 28 years. The gold market bears can put forth an argument that the past two times gold has challenged or pushed just above the $1,000.00 mark, prices have backed off sharply. Stay tuned!–Jim Wyckoff