Gold has rebounded sharply in the last two days, recovering nearly two-thirds of Tuesday's savage decline. Yesterday's peak came within three ticks of a 570.70 hidden-pivot target I'd said would be reached if a lesser pivot at 565.90 was exceeded. And so it was. Despite this impressive show of strength, the burden of proof over the near-term will remain with the bulls, since the April contract must chew through ponderous supply ranging up to 580 in order to demonstrate convincingly that buyers are truly in command. I'd put the odds of success at no worse than even, although it'll probably take at least three to four days of voracious buying to push past the old highs. Please note as well that there remains an important hidden-pivot resistance at 581.40 just $1.90 above last week's 23-year high. That's not much difference, but it's sufficient for us to infer that the hidden pivot must still be tested. That's why I wouldn't celebrate if the April futures merely exceed the so-far high without conquering the pivot as well. That might prove to be a false breakout. We could be more confident that a push to $600 is under way if the 581.40 pivot is exceeded on a closing basis, or if it's exceeded intraday by more than $1.00. *** Troubled by 'New' Dollars Long-time subscriber Ben Woo is disconcerted by the thought that the U.S. government might someday issue 'new' dollars in the event of a severe financial crisis. I leave it up to you, dear readers, to reassure him that it wouldn't necessarily be the end of the world. 'I'm not an economist, nor do I have a sound grasp of the basics of the hyperinflation/deflation debate, so it has been hard for me to follow a lot of the essays. I
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