It looks like we are about to find out how interesting the gold trading will be in the vicinity of its recent all-time high of 1917.90. The futures have extended Friday’s rally to within a few dollars of our first benchmark, the “D” target of 1912.80 which we described here on August 31. At that time we also observed the midpoint pivot of a very large pattern just above the record high, at 1923.80. The sibling “D” target of that midpoint is all the way up at 2142.30, so we took another look at the charts in search of a pivot somewhere between those two levels, and ideally not right on the round number of $2000. The resistance that held gold back for most of last week led us to a “D” target of 1981.10, shown in grey on the attached chart. This level might be just the place to get with the anti-gold cartel in front-running the dreaded two thousand. If that pivot gives way, then 2011 is going to be Y2K for gold. (Posted by Doug “harry” McLagan) _________ UPDATE (11:58am EDT): For the last week, in three of five daily gold forecasts, we have emphasized the importance of the pivot at 1923.80, including last night when today’s forecast was published. About three hours after publication, the futures surpassed the former all-time high and peaked a single tick below our pivot, at 1923.70. Within two hours of the high, gold had plunged by almost $62 per ounce. It then retraced most of the drop but has since come back down and re-tested the low, which has held for now. Was this the precious metals call-of-the-day? Maybe, but take a look at the silver update before you decide.
