Has Gold’s price action been getting you down lately? Take heart, since relief could come as early as today or tomorrow in the form of a Hidden Pivot support at exactly $1140.10.  For the last two weeks, that’s been our downside target for the correction begun five weeks ago from around $1266, although it didn’t begin to emerge with clarity until the August Comex contract plunged from $1208 right after the July 4th holiday weekend. (You can get a week’s worth of free forecasts and access to the 24/7 chat room by clicking here.)  At yesterday’s lows, the correction so far had knocked 8% off the price of gold relative to the all-time high recorded on June 21. Even though we’d been expecting this weakness, we told subscribers at the outset that we didn’t foresee anything more serious developing.

Although we avoid chiseling such predictions in stone, we’ve advised cautious bottom-fishing near $1140, using a tight stop-loss of $2 or less. Our confidence is high that there will be a tradable bounce from the target, although a decisive breach would be the equivalent of the groundhog seeing his shadow – i.e., six more weeks (or so) of winter.  Please note that we’ve identified a secondary target at 1155.00 that may have been fulfilled by yesterday’s 1156.90 low.  However, our gut feeling is that this Hidden Pivot support will fail, sending the August contract down to the more important one at 1140.10.

T-Bonds Turning?

Speaking of targets, a T-Bond forecast (and trading recommendation) disseminated to subscribers on Sunday night caught yesterday’s low in the September futures to the exact tick. We’d been quite bullish on the bond futures but told subscribers not to buy any contracts until the “Seps” corrected down to 126^07. (Click here to see the actual recommendation.)  We backed off the trade when the futures failed to hit 126^07 on the first pass yesterday morning, but the support itself appears to be holding. If so, a surge in the Bonds could portend the flight of capital from stocks over the near term. For that reason, we’ll reevaluate our 10757 target in the Dow – 220 point above current levels – if T-Bonds and shares diverge sharply today with the former going higher.

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