Gold rebounds further to as high as 1117.5 so far today and is set to take on 1120 level. The stronger than expected rise dampens our view that it's corrective in nature. But after all, with 1126.4 resistance intact, we'd still favor the bearish case. That is, fall from 1227.5 is not over yet. Break of 1077.3 minor support will indicate that such rebound from 1044.5 has completed and will flip intraday bias back to the downside. Further break of 1044.5 will target 1000 psychological support next. However, note that firm break of 1126.4 resistance will argue that correction from 1227.5 has already completed and will turn focus to 1163 resistance for confirmation.
In the bigger picture, gold has made a medium term top at 1227.5 and correction from there is likely still in progress to 100% projection of 1227.2 to 1075.2 from 1163 at 1010.7, which is close to 1000 psychological level. However, we'd expect such correction to be contained there at around 1000 psychological level and bring resumption of the whole up trend from 2008 low of 681. A break above 1126.4 resistance will indicate that such correction has completed and will turn outlook bullish for another high above 1227.5. However, note that sustained trading below 1000 will dampen our view and put 931.3 key structural support into focus.....
Comex Gold Continuous Contract 4 Hours Chart.
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