(Kitco News)-- December gold on the Comex division of the New York Mercantile Exchange has turned lower since peaking two days ago at $1,264.70 an ounce, stopping just shy of the $1,270.60 contract high from back in June. “We’ve had only one settlement, which was June 18th, above the $1,260 level,” says Scott Meyers, technical analyst and New York branch manager for the Pioneer Futures division of MF Global. “We have not sustained any movement through that area. Every time we get up there, there seems to be a pullback.” He anticipates support, however, around $1,240 to $1,238, then $1,235 to $1,233.50. “There are support levels all of the way down,” he says. At 9:04 a.m. EDT (1304 GMT), the contract was down $7.40 to $1,243.50. Meanwhile, the key for future direction is likely to be equities. “On very negative days (for stocks), you’re going to see a push to the upside (for gold),” he says. “If you see a 300-, 400- or 500-point down day, you’re going to see a $25, $30, $40 or even $50 rally (in gold). You’re going to see a push and move into tangible or hard assets.”

By Allen Sykora, of Kitco News; asykora@kitco.com

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