*** Gold Weekly Technical Outlook , Comex Gold (GC)

Comex Gold (GC)

Gold's sideway consolidation from 1072 continued last week and is possibly developing into triangle pattern. While deeper retreat cannot be ruled out, we'd continue to expect downside to be contained by 38.2% retracement of 931.3 to 1072 at 1018.3 and bring rally resumption. Break of 1072 high will target 1100 psychological resistance next. However, note that strong break of 1018.3 fibo level will argue dampen this bullish case and argue that deeper fall is in progress for 985.5 support instead.

In the bigger picture, the long term up trend in Gold has resumed after taking out 1033.9 resistance firmly. Rise from 681 would likely develop into another set of five wave sequence with first wave completed at 1007.7, second wave triangle consolidation completed at 931.3. Rise from 931.3 is expected to extend to 61.8% projection of 681 to 1007.7 from 931.3 at 1133.2 first and then 100% projection at 1258 next. On the downside, though, break of 985.5 support will dampen this bullish view and will turn focus back to 931.3 support instead.

In the long term picture, as discussed before, rise form 681 is treated as resumption of the long term up trend from 1999 low of 253 after interim consolidation from 1033.9 has completed in form of an expanding triangle. The strong break of 1033.9 resistance affirms this case and should pave the way to 61.8% projection of 253 to 1033.9 from 681 at 1160 and then 100% projection at 1460 level. We'll maintain this bullish view as long as 931.3 support holds.

Comex Gold Continuous Contract 4 Hours Chart

Gold Technical Outlook ( 26 October – 1 November)

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