The chart shows what we should expect in the days ahead if yesterday’s very nasty selloff in gold is to prove to have been no more than a shakedown. As many of you will already know, healthy bull markets tend to produce corrective ABC patterns that do not reach their ‘D’ targets. I’ve sketched this hypothetically in the accompanying chart, and if actual price action in the days ahead looks like what I’ve shown, it would be reason to buy gold aggressively at p. Until then, we’ll watch rather than speculate, since price action alone can tell us all we need to know.
