The gold price impulsed down after the Fed policy announcement on Tuesday, confirming targets at 1653.00 and 1588.50. The low of the day narrowly surpassed the low made a week earlier and slightly deepened the decline that has been in progress for two weeks. After rebounding, the futures have fallen enough to confirm a new, smaller pattern whose midpoint is so close to “B” as to be useless to us, but its “D” target is at 1641.90 and looks like a long-side opportunity. A buy order at 1642.10 with a stop at 1641.40 would risk $70 plus commissions. If gold can get down to the area just below $1600, it will encounter strong support. In addition to the 1588.50 target shown on the attached chart, the midpoint of a large pattern beginning at gold’s all-time high comes in at 1593.30, and the long-term trendline going back to 2008 is at about $1580 right now. (Posted by Doug “harry” McLagan) _______ UPDATE (2:45 p.m.): The futures bounced almost eight dollars from just above the 1653.00 midpoint, but after resuming the downtrend sliced through our order-pair around the 1641.90 pivot. Although gold is becoming very oversold in the short term, the chart structure seems to be pointing toward our 1588.50 target.
