GCZ09 – Comex December Gold (Last:1058.90)

Gold’s price action is still too choppy to watch, although the best way to board more or less risklessly for the next leg up would be to hunker down on the 5-minute chart and simply wait for the first speck of evidence of a breakout. We did some hunkering down during yesterday’s weekly tutorial session, aware that the somewhat bigger picture — i.e., the hourly chart — promised little in the way of excitement.  The day’s ups and downs invalidated a 1073.00 rally target identified here yesterday, however, although not the prospect of higher prices in the near future.  A 1080.00 target looks like a turkey shoot in the accompanying graph, but it raises the question of why gold would be consolidating so diligently right now if its next leap is only going to be a 20-pointer.  For now, we’ll accept the obvious answer — that a more important target at 1134 will be in play when buyers return in earnest.

Tagged as: Comex Gold Futures, Forecast, GCZ09, Gold