Tuesday, August 01, 2006

Gold

Here is an hourly chart showing pit and electronic trading in December gold futures. I am switching to the December contract from the August contract. December is trading about $12 over August. I last commented on gold here.

I thought the 650 level would be resistance but today the market moved decisively above that level. However it should go no higher than the 662 level which is the 2 and 5/8 mutiple of the 252 low made in 1999. I think the next significant move in gold will take it to the short term target near 580 and eventually below 500.

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