Comex Gold Extends Losses as Bulls Fading a Bit

 

 

16 December 2010, 9:55 a.m.
By Jim Wyckoff
Of Kitco News
http://www.kitco.com/

(Kitco News) -Comex gold futures on Thursday morning hit a fresh nearly three-week low on more profit-taking pressure and position evening as the year winds down and the holidays approach. February gold last traded down $19.00 an ounce at $1,367.30.

Gold prices have backed down from the early-December all-time record high of $1,432.50 an ounce, basis February Comex gold futures. Bulls so still have the overall near-term and longer-term technical advantage, but they have faded as the week has progressed. A 4.5-month-old uptrend is still in place on the daily bar chart.

A bearish weekly low close in February gold futures on Friday would produce some fresh near-term chart damage to begin to suggest that a near-term market top is in place. Further downside price action in the gold market would also begin to raise the specter of a bearish double-top reversal pattern forming on the daily bar chart.

As the holidays approach, look for trader interest in the gold market to diminish, which is likely to mean some more profit-taking and book-squaring that are likely to limit the upside in the precious metals prices for the next two weeks.

By Jim Wyckoff of Kitco News; jwyckoff@kitco.com

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