Gold took its biggest leap in recent memory Friday. Is it time to ratchet up our skepticism? Even more suspicious is that the rally was triggered by news with no real meaning: 260,100 jobs added to the economy in October. However, what is ostensibly bullish about bullion’s hysteria is that it came following the third low to have tested a 1622.40 Hidden Pivot support that has gotten pounded since late September. A durable bottom may be in, but let’s stipulate that the futures push above the ‘external’ peak at 1787.30 recorded on October 4 before we start trusting the uptrend. If you are inclined to trade the move regardless of where it might lead, please say so in the chat room — preferably with a strategy to offer. ______ UPDATE (Nov 10, 8:19 p.m.): The rally pushed past two ‘external’ peaks today, generating the most impressive impulse leg since February on the daily chart. There is an opportunity for buyers to rack up a third ‘external’ — all without a retracement — further shortening the odds that this move is the start of a significant trend change.
GCZ22 – December Gold (Last:1753.60)
