Whera are the rockets and fireworks?

Comex Gold Hits Record High as Bull Market Run Remains Strong 8 June 2010, 8:23 a.m. By Jim Wyckoff Of Kitco News www.kitco.com

Comex gold futures notched another fresh all-time record high early Tuesday, as investors continue to seek out the precious yellow metal as a safe-haven asset amid heightened financial, economic and geopolitical uncertainty. August Comex gold last traded up $6.50 an ounce at $1,247.30 after hitting a new high of $1,254.50 in early trading. A main bullish feature for gold continues to be traders purchasing the metal with European currencies as a hedge, or even as a speculative play, against further weakening of those European currencies. Bullish technicals are also driving new speculative buying interest in gold. The new all-time high scored Tuesday only added to bullish upside technical momentum. News reports overnight said the German government announced an 80 billion Euro reduction in its budget. Reports also said protesters have hit the streets in Spain. The Euro currency hit this week has it another fresh four-year low amid the financial crisis in the EU. Gold also has hit a fresh all-time high when priced in Euros. The U.S. dollar index is near steady Tuesday morning, and this week has hit a fresh 14-month high. The London A.M. gold fix was $1,248.00 versus the previous P.M. fixing of $1,215.00. Technically, Comex gold futures bulls still have the solid overall near-term and longer-term technical advantage and have gained fresh upside momentum this week. August gold futures prices are in a four-month-old uptrend on the daily bar chart. A close in August gold below the last "reaction low" low on the daily bar chart, now at last week's low of $1,198.10, would negate the aforementioned uptrend on the daily chart, produce serious near-term chart damage and would also be one early technical clue that a near-term market top is in place, or at least a significant downside correction is at hand. For August gold, shorter-term technical resistance is seen at the overnight all-time high of $1,254.50 and then at $1,260.00. Buy stops likely reside just above those levels. Sell stops likely reside just below chart support at the overnight low of $1,238.50 and then at last week's high of $1,230.60. Today's key near-term Fibonacci pivot level for August gold: $1,233.00. Comex silver futures are trading modestly higher Tuesday after posting a bullish "outside day" up on the daily chart Monday. July silver last traded up 16.8 cents at $18.33 an ounce. Silver has seen some near-term technical damage inflicted recently. Prices are still in a four-week-old downtrend on the daily bar chart after having recently negated a four-month-old uptrend. It would take a push in July silver above last week's high of $18.735 to repair the recent chart damage and provide the bulls with fresh upside technical momentum. July silver finds shorter-term technical resistance at the overnight high of $18.445 and then at $18.50. Buy stops likely reside just above those levels. Shorter-term technical support for July silver is located at the overnight low of $18.085 and then at $18.00. Sell stops are likely placed just below those levels. Today's key Fibonacci pivot level for July silver futures is located at $18.16. By Jim Wyckoff, contributing to Kitco News; jwyckoff@kitco.com