Uh-oh. Before taking this latest dive, December Gold not only failed to reach an ‘easy’ target at 1763.30, it also died without having surpassed an ‘external’ peak at 1755.00 recorded in mid-October. In fact, last Friday’s last-gasp thrust merely tied 1755.00, setting the stage for this morning’s collapse, but also for a potentially lengthy slog in purgatory. Now, weakness could persist down to as low as 1629.40 (see inset), but at least to 1692.20. Please note that the target is near the lower end of the range delineated in a previous tout that superimposed a pennant formation on the weekly chart. The conclusion was that the gold price could oscillate between around 1600 and 1800 until well into 2014.
