We’ve been using an ambitious rally target at 2771.70 (newly corrected) for months, but the wait has begun to impact the odds it will be reached any time soon. The midpoint Hidden Pivot at 2549.30 has become a barrier to October Gold’s upward progress, and there can be no guarantees the target will be achieved until such time as buyers push decisively past that number. So far, they have failed to breach it, having spent the last month screwing the pooch just below it. A pullback to the green line (x=2438) may be needed to give the futures a rest and a running start. That would generate a ‘mechanical’ buy signal in theory, although it would not be strong because the pattern’s C-D leg has dragged on for long enough to squander the bullish energy created by the A-B impulse leg. For now, though, the longer the futures hover just beneath p, the greater the chance they will relapse 50-100 points to regroup for another try. ______ UPDATE (Sep 12, 11:30 a.m.): No pullback or running start was necessary, since the futures have turned the 2549 midpoint Hidden Pivot into chop suey this morning. The move looks sufficiently powerful to all but guarantee a run-up to at least p2=2680.50 over the near term, and thence to the 2771.70 target flagged above.
GCV24 – October Gold (Last:2557.20)
