Gold technical and Chart Update

Gold Short term

As far as the short term gold chart, there should be strong support near 1023-1044. Today is the last day of the month and also First Notice day for December Futures. Traders have moved to the Feb contract. We need a close above 1085 to neutralize the situation and then a close above 1095 in order to favor higher prices towards either 1102-1112 and or 1122-1127. As long as we remain below 1085 the potential to move lower can continue.  However, we should be on an alert here for a bounce.  Lets go to the next chart....

Gold Intermediate term

The question is whether gold made its low last Friday at the dotted line or whether gold is going to move lower to the red lines?   A close above 1095 and then above 1105 would strengthen the case that an intermediate term low has been established.

Gold Short term Cycles

We have two charts to present.

This rotation on the cycles chart does allow for a low to be made here and launch a rally from this point. That doesn't mean that IT WILL happen that way, but a close back above 1085 and then 1094 would indeed favor that. The one thing that this chart does emit is a BLUE cycle low, which is what BULL markets produce when they are rallying. We should bear in mind the big COT changes that have occurred in the past month as it is IMPLYING that a gold RALLY is coming. It could take a couple more weeks to develop, but we should be aware it can begin at any time. A close above 1085 will be the first thing to watch for and then a close above 1095 would be the 2nd. If we close above 1095, odds favor we are moving higher into and around the Dec 11th time frame.

First things first, we need a close above 1072-1075 and then 1085.

Gold Cycles Alternate Chart

The alternate view is that there has been no inversion and the downside of gold is about to accelerate lower into Dec 7th – 11th time frame. ANY CLOSE BELOW 1150 favors this scenario. Otherwise, its possible to move higher as in the first chart.