Gold Market in Quiet Uptrend, which is Bullish

august-gold-2011Comex gold futures prices are trading modestly higher Tuesday, as higher crude oil prices and a weaker U.S. dollar index are supporting the precious metal. As continues to be the case, crude oil and the dollar index are leading most commodity markets in price direction, including gold. August Comex gold futures bulls have the overall near-term and longer-term technical advantage. A 4.5-month-old uptrend is in place on the daily bar chart, while a 10-year-old uptrend remains in place on the longer-term monthly chart. Bulls are slowly regaining near-term upside technical momentum.

Prices have been creeping steadily higher since the sharp drop in early May that took August gold prices down to $1,464.10. It’s the slow and unassuming price uptrends, such as that in gold at present, which are the most likely to continue. Gold bulls’ next near-term upside technical objective is to produce a close above solid technical resistance at the June high of $1,555.00. Bears’ next near-term downside price objective is closing prices below solid technical support at the June low of $1,511.40. First resistance is seen at Monday’s high of $1,548.20 and then at $1,555.00. First support is seen at Tuesday’s low of $1,539.30 and then at Monday’s low of $1,533.60. Stay tuned! Jim Wyckoff

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