Comex gold futures slipped on Thursday as the dollar and European equities edged upwards, curbing the metal's demand ahead of next week’s US Federal Reserve policy meeting.

Comex gold futures moved perfectly in line with our expectations. As mentioned earlier, an unexpected fall below $1,325 could postpone the bullishness and such a fall could see prices testing $1,310 levels but, we felt it could once again find good support there.

Prices moved as expected. Though they have bounced back from $1,315 levels, there is no indication of any major strength going forward. Only a crossover above $1,340 again could revive bullish hopes. A potential target still lies around $1,450-55, being an equality target in the coming months. Once above the near-term resistance at $1,345 further resistance is seen at $1,365-75 levels now.

Once above here, prices could push higher towards $1,400 levels or even higher in the coming sessions. But, prices are struggling to gain a foothold around $1,310-20 levels and short-term price indications are not that strong.

A direct fall below $1,310 could postpone the bullishness and such a fall could see prices testing $1,288-90 but, we still feel it could once again find good support there to edge higher again.

Failure to hold support here could dent the prospects of the uptrend. The favoured view still expects prices to find support around the $1,305-10 level and then edge higher towards important resistances around $1,400 followed by $1,435-50.

Wave counts: It is most likely that the fall from the record $1,925 to the recent low of $1,088, was either a possible corrective wave ‘A’, with a possibility to even extending towards $1,025-30 levels or a complete correction of A-B-C ending with this decline. Subsequentl to this decline, a corrective wave ‘B’ could unfold with targets near $1,375 or even higher.

After that, a wave ‘C’ could begin lower again. Alternatively, we can also expect wave ‘B’ to extend to $1,476 levels.

If the current decline as a whole from $1,920 can be considered a fourth wave, then the fifth wave could begin and cross $1,700 in the long-term.

As prices have broken certain important resistances and shown impulsive tendencies, we will now stick with the above count. And as mentioned earlier, once prices reach the $1,025-45 level we will look for any signs of reversal.

There are signs of a turnaround, and prices have convincingly risen in volumes and closed above $1,300, which further reaffirms our wave count.

RSI is in the neutral zone now, indicating that it is neither overbought nor oversold. The averages in MACD have gone below the zero line of the indicator again, indicating a bearish reversal. Only a crossover again above the zero line could hint at a reversal in trend to bearish. Therefore, buy Comex gold on dips to $1,305-10 with a stop-loss at $1,298 targeting $1,345, followed by 1,365.

Supports are at $1,305, 1,288 and 1,270 and resistances are at $1,345, 1,365 and 1,400.

The writer is the Director of Commtrendz Research. There is risk of loss in trading .

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