Gold’s quiet trading on Thursday left our patterns and price targets intact ahead of the employment report and strengthened the sense that a strong move is imminent. The monthly Friday morning employment data usually sets the futures markets whirling. It could send gold quickly to one or more of our upside targets, but it could just as easily cancel two of them in the event of a print at 1813.60 or lower. Those two targets, at 1872.50 and 1880.60, remain active, and we provided specific shorting ideas for them yesterday. But gold is now in position to impulse powerfully through a group of prior highs ranging from 1842.70 to 1856.80. Traders should not have orders working at 8:30 EDT when the report comes out, but after it does, the one-minute chart will be a good place to look for opportunities. A bullish reversal pattern that emerges after a selloff, especially if it comes with camouflage, would be ideal. (Posted by Doug “harry” McLagan) _______ UPDATE (11:42am EDT): Gold impulsed well above 1856.80 during the early morning hours and then surpassed the two highlighted targets shortly after the employment report came out. Here’s hoping that some of our readers simply decided to get long (or add to their existing longs) before about 2 o’clock in the morning, COMEX time.
