(Kitco News) – Although the gold market could see a correction for the next few days, the main trend remains up, says one Chicago-based analyst.
“A trade through $1249.40 will change the main trend to down. The next major upside target comes in at $1305.50,” noted James Hyerczyk, publisher of The Pattern, Price & Time Report.
Gold ended slightly lower Monday after hitting an overnight six-week high. December Comex gold futures last traded at $1,275.80 an ounce, up $0.50 on the day.
However, Hyerczyk pointed out that the metal has been able to hold key resistance, which is keeping him optimistic.
“The market is trading on the strong side of its retracement zone at $1269.40 to $1259.30. This is helping to sustain the upside bias,” he wrote in an FXEmpire column Monday.
“The way of least resistance is up. Any selling is likely to be labored because of the many potential downside targets.”
Technically speaking, Hyerczyk said he is eying the $1,271.10 level closely as support. He added that the main range for gold right now lies between $1,211.10-1,305.50 an ounce.
Over the shorter term, he said the range remains from $1,211.10 to $1,277.30 an ounce.