February ’17 Comex Gold — Daily Continuation
Support at 1116.5. Resistance, initially a close above 1200 (revised).

Prices have shown signs of life in recent days following a fairly significant liquidation of the large commercial net short position. We should be looking for additional evidence of a potential low in place such as a higher secondary low.

One not so obvious relationship we found today came off the weekly chart. IF we take the decline from the secondary high in Jan 2015 to the year-end low and subtract that from the 2016 high, we get essentially the recent low. Mathematically it is (1299.2 – 1046.2 = 253) subtracted from 1377.5 = 1124.5. The low on gold recently was 1123.9. It basically means the market duplicated a previous swing at the low.