Gold continued to claw its way higher yesterday, making steady progress since April 1 against punitive losses that had occurred, effectively, in mere hours. Look at the chart below and you'll see the nasty downdraft that took bullion from an all-time high near $1036 in mid-March to a recent low of $876. That's a 15% decline, and most of it could be accounted for by just a relative handful of price bars that have been marked in red. Add them up and you could say that it took only about ten hours for most of the damage to occur. We'd like to say the worst is behind us, but encouraging as the April rally has been, it has only recouped about 40% of the losses sustained from mid-March into early April. Still, yesterday's bold move against the corrective tide was encouraging, since it slightly surpassed a 939.10 benchmark we'd disseminated the night before. We didn't think the June futures to get there before late today, but the fact that they reached, then minutely exceeded, the target as quickly as they did suggests that still higher prices are imminent. If so, it would take a minimum 948.30 today to reassure us that buyers have plenty of power in reserve. That's a Hidden Pivot target that comes from the hourly chart, and if it is reached ' or better yet exceeded -- it would create a robust new impulse leg on the lesser charts. Creating the next bull leg after that will be even more challenging, since it the rally would need to surpass a 1001.30 peak made a few weeks ago, marking the moment when gold fell off a cliff. Yesterday's rally in gold got a psychological boost from a surge in oil, which has been on a rampage lately. The
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