Gold Could Encounter Strong Resistance At $1786/89

 | Dec 03, 2021 04:32AM ET

  • Gold spot hit the target of 1766/64 but not quite as far as 1758/56.
  • Silver breaks strong support for a sell signal - holding below 2290/2300 is a crucial sell signal initially targeting 2230 and 2200.
  • We missed the 2200 target by only 15 ticks so far.
  • WTI futures broke critical support at 6460/30 but bounced from 6243.
    • h2 Today's Analysis/h2

    Gold outlook is negative, so gains are likely limited with first resistance at 1778/80. Strong resistance at 1786/89. Shorts need stops above 1792.

    Shorts at 1778/80 target 1773/71 before a retest of 1763/61. A break lower eventually is likely, targeting 1758/56 and 1752/50.

    Silver holding below 2290/2300 was a critical sell signal initially targeting 2230 and 2200. We are almost there. Further losses are expected eventually to 2160/50.

    Gains are likely to be limited with minor resistance at 2245/55 (a high for the day here yesterday, in fact) then strong resistance at 2285/95.

    WTI Crude January first resistance at 6765/85. Shorts need stops above 6840. A break higher targets 6930/50, perhaps as strong resistance at 6990/7120. Shorts need stops above 7170.

    Shorts at 6765/85 target 6570/50 then 6460/40. Further losses retest 6260/40, although I do not see this as strong support. Further losses can target 6200/6174 and 5970/30.