An interesting chart at Abnormal Returns yesterday:
Gold’s range is narrowing. (Phil Pearlman chart via The Short Side of Long)
Gold front futures hit a four week low overnight as Kitco (on blogroll at left) comments:
...Technically, April gold futures prices hit a fresh five-week low overnight. Prices have dropped well below the key 200-day moving average, which comes in at $1,670.00 level. Fresh near-term chart damage has been inflicted early this week as a bearish downside “breakout” from a choppy and sideways trading range on the daily chart has occurred. Bears have the near-term technical advantage.Front COMEX futures $1643.90 down $5.20.
The gold bulls’ next upside price breakout objective is to produce a close above solid technical resistance at the February high of $1,687.00. Bears' next near-term downside breakout price objective is closing prices below solid technical support at the January low of $1,627.90. First resistance is seen at $1,660.00 and then at Monday’s high of $1,670.30. First support is seen at the overnight low of $1,639.50 and then at $1,627.90....MORE
