Comex Gold (GC)
Gold's rise from 1309.1 extends further to as high as 1411.5 so far today and at this point intraday bias remains on the upside for a test on 1432.5 high. However, as discussed before, the choppy look of such recovery indicates that it should be corrective in nature. Hence, we'd expect strong resistance below 1432.5 to limit upside and bring another fall to extend the consolidations from 1432.5. On the downside, break of 1354.3 minor support will flip bias back to the downside for 1370 support.
In the bigger picture, last week's strong rebound from 1309.1 argues that price actions from 1432.5 are merely consolidation in the larger rally. Also, gold is still staying comfortably inside the long term rising channel. 1432.5 might not be the important top yet. Nevertheless, even in case of another high above 1432.6, we'd continue to look for reversal signal as gold approaches 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. On the downside, sustained break of 1309.1 support is now an important signal of medium term reversal and should bring sizeable pull back towards 1044.5/1227.5 support zone.
Comex Gold Continuous Contract 4 Hours Chart
Comex Gold Continuous Contract Daily Chart