Gold is getting gratuitously pounded Sunday night, but the so-far $40 selloff has yet to negate the bullishness of Friday’s impulsive thrust. Recall that that rally surpassed an external peak at 1751.80 recorded on September 3, refreshing the bullish energy of the hourly chart. In comparison, tonight’s decline, as nasty as it seems, has so far fallen $2 shy of penetrating a 1707.20 ‘external’ low from October 27 that is of roughly equal importance. What this implies is that bulls are winning a ‘duel’ so far against sellers who evidently are lacking in guts. Although the good guys could go back on the offensive with a push above the 1731.10 Hidden Pivot midpoint of the pattern shown, bears could take command short-term by exceeding 1696.50 to the downside.
