Gold continues to hover above its quadruple-bottom level of approximately $1530, and we doubt that we are the only ones who have considered the possibility that the support level will be broken shortly after the Non-Farm Payrolls report is released at 8:30 a.m. Eastern time today. That notion makes the midpoint pivot at 1548.30, shown on the attached chart, look rather vulnerable, while the notion of a quadruple-bottom being broken makes the pattern’s ‘D’ target at 1521.90 look rather vulnerable as well. But it sure is a good-looking pattern, so we ought to be aware of it. Much less delicate is our stalwart ‘D’ target at 1456.40. We continue to believe that the series of lower highs, which yesterday acquired a new member at 1574.60, will give us a good sense of whether and when gold has made an important low. Again we would put the emphasis on 1601.40 in this regard. (Posted by Doug “harry” McLagan) _______ UPDATE (June 1, 2:00 p.m. EDT): During the night the futures traded down to a low of 1548.60, three ticks above one of our targets, and then bounced by more than eight dollars before making a lower low. Eight dollars seemed like a decent amount until today’s post-NFP rally, which has been an order of magnitude larger and is still underway.
