Gold Rallies to Near Record High on Safe-Haven and Technical Buying By Jim Wyckoff 11 May 2010, 2:10 p.m. Continued safe-haven buying support and bullish technical momentum on Tuesday pushed Comex gold futures to within a whisker of a new all-time record high and prices did close at a fresh all-time high close.

Prices also scored a fresh 5.5-month high of $1,225.50, basis June Comex futures, and closed up $19.70 at $1,220.30 an ounce.

The all-time high in nearby Comex gold futures is $1,227.50 an ounce, scored in December of 2009. After a one-day respite following weekend news of a 750 billion Euro financial aid package for debt-distressed European Union countries, stock markets and the Euro currency saw selling pressure early Tuesday that did spill over into other non-safe-haven asset markets, such as crude oil and the other European currencies.

However, as the trading sessions progressed Tuesday, the U.S.

stock indexes, crude oil and Euro currency did rally off their lows, while the U.S.

dollar index backed down from its high seen earlier in trading.

However, gold maintained its muscular posture and closed near the session high. Traders continue to wonder if the EU-IMF rescue package will put to rest the European sovereign debt issue and calm investor fears and uncertainty.

The "jury is still out" on that important issue.

Look for gold prices to continue to rally if the European Union debt situation remains very uncertain in the eyes of investors worldwide. In overnight news, holdings in the largest gold exchange traded fund (ETF), SPDR Gold Shares, hit a record high this week--up 33 tons from a week ago. The London P.M.

gold fixing was $1,222.50 versus the previous P.M.

fixing of $1,196.50. NOTE: Much of my analytical and technical work is based upon price trends--both near-term and longer-term.

Indeed, most successful traders and analysts do place serious emphasis on price trend.

If youd like to read more about the significance of price trend in trading and markets, and how to define it, I wrote a feature story a while back.

If you are interested in reading it, just send me an email at and Ill attach it and email it back to you.--Jim Technically, June Comex gold futures closed nearer the session high and hit a fresh 5.5-month high Tuesday.

The gold bulls still have the solid near-term and longer-term technical advantage.

Prices are in a three-month-old uptrend on the daily bar chart and are in a nine-year-old uptrend on the longer-term monthly chart.

Bulls next upside technical objective is to produce a close the all-time record high of $1,227.50, basis nearby futures.

Bears next downside price objective is closing prices below solid technical support at $1,156.20.

First resistance is seen at Tuesdays high of $1,225.20 and then at the record high of $1,227.50.

Support is seen at $1,200.00 and then at this weeks low of $1,184.40.

Wyckoffs Market Rating: 9.0. July silver futures closed up 74.1 cents at $19.294 an ounce Tuesday.

Prices closed nearer the session high and hit a fresh 5.5-month high.

The key "outside markets" were in a mostly bullish posture for silver Tuesday: higher crude oil and stock index futures prices.

Golds push to near a record high Tuesday also helped to boost silver prices.

The silver bulls gained fresh upside near-term technical momentum Tuesday and have the solid overall near-term technical advantage.

The next downside price objective for the bears is closing prices below solid technical support at $18.00.

Bulls next upside price objective is closing prices above solid technical resistance at the December 2009 high of $19.42 an ounce.

First resistance is seen at Tuesdays high of $19.365 and then at $19.42.

Next support is seen at $19.00 and then at $18.89.

Wyckoffs Market Rating: 8.0. July N.Y.

copper closed down 215 points at 320.65 cents Tuesday.

Prices closed near mid-range.

Mostly bullish outside market forces Tuesday could not help out copper, which is a bearish clue for the red industrial metal.

Prices are still in a four-week-old downtrend on the daily bar chart and the bears have the overall near-term technical advantage.

The next downside price objective for the bears is closing prices below solid technical support at last weeks low of 300.55 cents.

Bulls next upside objective is pushing and closing prices above solid technical resistance at last weeks high of 336.35 cents.

First resistance is seen at Tuesdays high of 323.75 cents and then at 325.00 cents.

First support is seen at 317.50 cents and then at 315.00 cents.

Wyckoffs Market Rating: 3.0.
By Jim Wyckoff, contributing to Kitco News;