Here is an hourly chart showing pit trading in April gold futures. Next week I am going to switch to the June contract which is currently trading about $5 over April. Keep this in mind when you read the rest of this post.
Gold has been underperforming silver lately and on this basis I concluded that the move up from point d on the chart would be a three phase correction ending below the bull market high at 579. But today the market gapped above that high and instead of finishing the day weak rallied sharply into the close. This convinces me that it is heading for resistance at the 598 level which is the 2 3/8 multiple of the 1999 low at 252. I think the market will take a quick peek above 600, a nice round number but that should be it. The next $ 100 from there should be downward.
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