Gold stalled yesterday, but so did just about everything else. Optimists that we are, we’ll assume bulls are alive and kicking but took the day off. As the accompanying chart shows, the August contract must still pull back to at least 1610.30 to be presumed ready for a C-D follow-through to as high as 1676.90. (That target assumes C will occur at 1610.30.) Another possibility is that Gold will simply zoom higher without a pullback. That would be quite bullish, provided the move surpasses two peaks recorded in June, respectively, at 1635.40 and 1642.40. Even without such a thrust, however, the rally from July 23’s 1562.00 low is already bullishly impulsive on the daily chart. Finally, just to add a little bit of precision to the outlook, even if a bit speculatively, there’s the 1657.90 target of the ersatz pattern shown. I say ‘ersatz’ because the A-B leg we are using to enable this projection did not exceed any kosher ‘external’ peaks.
