February Comex gold futures prices have backed down from the early-December all-time record high of $1,432.50 an ounce. Profit- taking and position-evening as the year winds down and as the holidays approach has put some downside price pressure on the precious yellow metal, as prices have been trending lower for the past two weeks. However, the gold market bulls still have the overall near-term and longer-term technical advantage. A 4.5-month-old uptrend is still in place on the daily bar chart.
The longer-term monthly continuation chart for nearby gold futures shows prices have been trending higher for nearly 10 years. There are no significant early technical clues to suggest that a market top is close at hand for gold. Gold bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at last week’s high of $1,408.90. Bears’ next near-term downside price objective is closing prices below solid technical support at last week’s low of $1,361.60. First resistance is seen at $1,400.00 and then at $1,408.90. Support is seen at Tuesday’s low of $1,384.10 and then at Monday’s low of $1,376.60. Stay tuned! Jim Wyckoff