Is this the start of a big correction in gold? I have my doubts, although we shouldn’t fail to notice that a search for conventional support could take the December contract down to lows in the $980s made in late September/early October. Mining stocks would get hit harder, of course, but that’s not telling you anything you did not know already. We’ll have a better idea about how bad the damage is likely to be once we see how the impulse leg from yesterday’s high plays out on the hourly chart. So far, however, there is not even a ‘b-c’ correction to work with. _______ UPDATE (1:45 p.m. EDT): Moving with a raggedy kind of nastiness, the downtrend has found tentative support within two ticks of a Hidden Pivot midpoint at 1032.50. (A=1060.80, from the hourly chart, 10/26.) The actual low is above the midpoint, and that is mildly encouraging, but if it is decisively breached — say, by 0.60 points or more — you could infer that the selling will continue down to at least 1020.70, the ‘D’ target associated with the midpoint. A close beneath 1032.50 would likely clinch the climactic selloff.
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