Gold futures may have formed a short term top during Wednesday's trading session after its latest surge into new all-time highs near $1,450 per ounce. With crude oil trading well above $100 a barrel on fears of supply disruptions from North Africa and the Middle East, and the US Dollar stumbling into new lows, speculative buyers have flooded into the precious metals complex over the last several weeks to support these high prices.

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Often such impulsive rallies will experience sharp short-term technical corrections, especially when driven by indirectly related headlines. Wednesday's reversal may be the beginning of such a correction, with Gold futures falling out of the Rising Wedge chart pattern shown here on the 60-minute time interval.

This Rising wedge is quite well developed and delineates a very clear rising uptrend support line, which was breached at the $1,435 per ounce level. This triggered the breakout signal on very strong momentum- measuring a full 10-bars on the Autochartist indicator.

If the pattern unfolds, the projected price forecast suggests gold can drop to the $1,411 to $1,423 range in the near term. The overall trend for higher prices would still be in tact at these price levels, allowing for more upside potential after the correction plays out.

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