Oil N' Gold Focus Reports: Gold Weekly Technical Outlook

Gold jumped to 1388.1 new record high last week before making a temporary top there and retreated. Upside momentum is seen diminishing with mild bearish divergence condition in 4 hours MACD. But there is no sign of topping yet as long as 1325.6 support holds and current rally is still expected to continue. ABove 1388.1 will target 1400 psychological level and then 161.8% projection of 1084.8 to 1266.5 from 1155.6 at 1449.6 next. Though, break of 1325.6 will indicate that a short term top is formed and bring deeper correction first.

In the bigger picture, rise from 1155.6 is treated as the fifth wave of the five wave sequence from 1044.5, which should also be fifth wave of the rally from 681 (2008 low). Recent acceleration suggests that current rally would probably extend further to 161.8% projection of 931.3 to 1227.5 from 1044.5 at 1449.6 before completion. Though, we're aware of long term projection target of 100% projection of 253 to 1033.9 from 681 at 1462 and we'd anticipate strong resistance from there to bring medium term correction finally.

In the long term picture, rise from 681 is treated as resumption of the long term up trend from 1999 low of 253. The anticipated correction didn't happen and gold will now likely climb further to 100% projection of 253 to 1033.9 from 681 at 1462 before making a top.

Comex Gold Continuous Contract 4 Hour, Daily, Weekly and Monthly Charts


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