The gold market has been consolidating for about four weeks now, and it will signal its intentions with a print in the April futures either below 1706.00 or above 1769.70. The futures have impulsed upward on the hourly chart in the early morning hours of Tuesday, and we should watch for a pullback to begin around 1746.30, which is the “D” target of a pattern whose midpoint resisted the market’s advances more than once on Monday. Between here and the 1769.70 trigger level, there is a midpoint pivot of a larger pattern at 1763.20 which should not be overlooked. At the moment there are no downside targets worth considering, but that does not mean that the usual gold sellers won’t push the market to a low during the morning hours, as they have done so many times in recent weeks. (Posted by Doug “harry” McLagan)
