Comex Gold (GC)

No change in Gold's outlook. choppy recovery from 1309.1 is treated as a correction to fall from 1424.4 only and is expected to be limited by 61.8% retracement of 1424.4 to 1309.1 at 1380.4. In other words, such recovery should be near to completion. Below 1354.3 minor support will turn bias back to the downside for a retest on 1309.1 low first. However, sustained trading above 1380.4 fibonacci level will turn focus back to 1424.4 high instead.

In the bigger picture, current development suggests that a medium term top is in place at 1432.5 after gold failed two important projection target, 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 and 100% projection of 253 to 1033.9 from 681 at 1462. Note that whole up trend from 681 (2008 low) might have finished a five wave sequence too. The fall from 1432.5 might now be in progress towards 1044.5/1227.5 support zone. On the upside, decisive break of 1432.5 is needed to confirm up trend resumption. Otherwise, even in case of strong rebound, we'd expect another fall to extend the consolidation/correction from 1432.5.

Comex Gold Continuous Contract 4 Hours Chart

width=479

Comex Gold Continuous Contract Daily Chart

width=479