Pardon me for not getting excited about Friday’s impulsive thrust, but scores of failed rallies have taken the thrill out of gold’s occasional, meaningless flights of fancy. We should make the futures earn our trust every step of the way, meaning in this case we shouldn’t even assume D=1704.10 will be reached via this presumptive bear rally. Let buyers push this sack of cement decisively past our minimum upside objective first, p=1692.00, and then we can raise our expectations just a little. This pattern should work well for ‘mechanical’ buying, but don’t pass up an opportunity to take a partial profit on a modest, one-level move. Incidentally, gold ended the week at the scariest precipice on this chart — i.e., the 1660.90 midpoint Hidden Pivot of a pattern projecting to as low as 1497.20. If the support doesn’t hold, the futures should be presumed bound for at least 1619.90, a secondary D target derived from A2 on the chart.
GCZ22 – December Gold (Last:1683.50)
