GCG14 – February Gold (Last:1239.90)

We’re told there was nothing criminal behind yesterday’s $30 swoon. Even if that’s the case, there was most surely a whiff of desperation on the seller’s part. COMEX reported that 4000 contracts changed hands in the space of a single second. That might not sound like a lot of time, but it evidently was time enough for buyers to pull any and all reasonable bids, the better to rip the unfortunate seller a new orifice. From a technical standpoint, we’ll still need a pop above December 16’s important ‘external’ peak at 1251.70 for bulls to remain on the offensive. If it happens today, but no later than Wednesday in any case, that would be best.  My immediate upside target is 1261.80, so traders should bring a bullish bias to the task.