The steep ascent from the 1618 low recorded on November 3 has enough power to all but guarantee another big leg up once the initial leg has been fully corrected. It surpassed no fewer than five prior peaks, three of them ‘external’, without a visible correction on the daily chart. So that we don’t let expectations get too far ahead of reality, I’ve projected a rally target at 1907.60 that uses a somewhat conservative ‘reverse’ pattern. In the meantime, a pullback to the green line (x=1690.60) would generate an appealing ‘mechanical’ buy signal. The rally may prove too strong to gift us with such an opportunity, but we should be prepared to act if the futures swoon.
GCZ22 – December Gold (Last:1754.40)