Since gold has been moving in lock-step with stocks, this evening’s very bullish tout for the Dow Industrials implies that bullion quotes are likely to continue along the bullish path begun from 1524 on December 29. Accordingly, we should continue to favor the 1681.50 target given here yesterday as a minimum upside objective for the near term. If that number is achieved, bulls should take encouragement, since it would complete a minor rally pattern above the important midpoint pivot of the four-month-old correction, effectively transforming a major resistance into a presumptive support.
