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Kitco Metals Roundup: Gold Hits All-Time Record High as Bulls Gain Still More Steam
Posted By admin On May 12, 2010 @ 8:34 am In Economic Crisis,Old Infowars Posts Style | Comments Disabled
May 12, 2010
Comex gold futures prices scored a new all-time record high of $1,245.40 an ounce in overnight trading Wednesday. Continued safe-haven buying interest, pre-placed buy stop orders, solidly bullish technicals and more interest from the general investing public have all combined to send gold prices into uncharted territory this week. June Comex gold last traded up $22.50 at $1,242.50 an ounce.
While world stock markets have stabilized a bit following last weekend’s news of a 750 billion Euro financial aid package for debt-distressed European Union countries, investor demand for gold as a safe-haven asset has increased this week. Holders of European currencies are buying gold in strong fashion as a hedge against further European currency weakness. Gold also set new record highs overnight when priced in Euros and the British pound.
Gold prices have become de-coupled from the U.S. dollar’s value recently, as the greenback has also rallied to multi-month highs. The fact that gold has become de-coupled from the U.S. dollar is another bullish clue for the precious yellow metal.
The London A.M. gold fix was $1,241.25 versus the previous P.M. fixing of $1,222.50.
Technically, June Comex gold futures bulls have the strong overall near-term and longer-term technical advantage. The fact that prices have pushed to a new all-time high now suggests much bigger upside targets in the coming weeks and months. The next major upside target for the bulls is $1,500.00 an ounce. Below that level does lie strong psychological resistance at $1,300.00 and $1,400.00. Also, gold traders should now expect significantly larger daily price moves now that prices are in uncharted territory. However, bulls should not expect those likely bigger daily price moves to all be on the upside, even though the path of least resistance for gold will remain sideways to higher until price uptrends are penetrated on the downside and negated. June gold prices are still in a three-month-old uptrend on the daily bar chart. For June gold, shorter-term technical resistance is seen at the overnight record high of $1,245.40 and then at $1,250.00. Buy stops likely reside just above those levels. Sell stops likely reside just below shorter-term support at $1,235.00 and then at the overnight low of $1,227.20. Today’s key near-term Fibonacci pivot level for June gold: $1,222.00.
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