Just a little higher would trigger a ‘mechanical’ short on the weekly chart, but the pattern is not of the highest quality, and my gut is saying not to resist the rally. A better opportunity may lie in bottom-fishing the next correction, which could be as much as $78 or as little as $39. We’ll let bulls deal with resistance from July 7’s top-let at 2406.70 first, but stay tuned to the chat room and your email notifications if you trade this vehicle and want to stay attuned in real time. Please note that a worst-case relapse could bring the August futures down to as low as 2204.20 without diminishing the bullish look of the long-term charts. This is unlikely in my view, but it never hurts to be prepared for whatever pain bullion is capable of dishing out.
GCQ24 – August Gold (Last:2397.70)
