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June gold breaks to new highs

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The Gold/Silver Index (XAU.X) 87.30 +1.7% is one of the few sectors showing gains in an otherwise negative market environment today. The June Gold futures contract (gc02m) has broken to a new 52-week high today and continues to look bullish. The vertical count from this commodities point and figure chart continues to hint at the $360 level longer-term.

June Gold futures (gc02m) chart - Daily Interval

The June gold futures contract continues to look bullish. After two tests of its bullish support trend at $290 and $307 a new "buy signal" was given at $313 on the point and figure chart, resulting in a new bullish vertical count of $356. With retracement overlaid, bullish bar chart enthusiasts may now have their futures chart looking like that above and now targeting the 339 level, with support near $313, which amazingly looks to have been resistance not long ago.

Newmont Mining Chart - Daily Interval

Shares of Newmont Mining (NEM) $31.65 +3.2% are breaking to a new 52-week high today. The current bullish vertical count from the point and figure chart is still building its current vertical count column which hints at $55.50. It would take a 3-box reversal back to $28 in order to have the current bullish count column completing itself. I could see a near-term test of $32.50 in NEM, then a nice little reversal to $28 (test the rising 50- day MA again) before a new leg higher longer-term.

Jeff Bailey
Senior Market Technician
Option Investor

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