Despite the deflationist theme sounded in today’s commentary, I don’t see gold falling apart here. Far from it, for there are in fact just too many buyers around the world who understand that paper money, most particularly the dollar, is currently enjoying its last hurrah.  That said, we should keep a very close eye on Comex Gold’s ups and downs and take seriously any bearish impulse legs that develop on the hourly chart. The ones in progress this  week played out yesterday to their lowermost target, 1186.50, prompting an update at the time that that could be it for sellers for the time being.  We shall see. But notice in the accompanying inset that there was no damage whatsoever to the daily chart. That would require a selloff this week exceeding 1156.20 — not impossible, as we know, but until such time as it happens there’s no point in worrying about it. ______ UPDATE (3:55 a.m. EDT):  DaBoyz are playing dirtier than usual tonight, taking the futures down nearly $12 just to run stops tied to a key low at 1184.40 recorded on May 10. The futures have since recovered nearly all of the loss, making the move seem in retrospect like a wholly gratuitous swoon.  The nearest Hidden Pivot target at the moment is 1194.40, $1.10 above the so-far recovery high.