Yesterday’s rally was an easy climb, since there was not a single external peak on the hourly chart along the way. However, buyers turned timid when challenged by a minor peak at 1682.40 (see inset), causing the futures to die 3.60 points shy of it. Because of this they’ll need to do quite a bit more over the next few days to allay suspicions that there’s not much substance behind this rally. To make certain we don’t get fooled, let’s stipulate that the futures surpass both of the external peaks labeled in the chart before we wax enthusiastic. In the meantime, a b-c pullback from just above 1682.40 should be viewed as the best ‘camo’ opportunity we might have to get aboard if gold is in fact ready to take off. ______ UDPATE (10:45 a.m. EST): As expected, gold turned leaden, again shy of 1682.40.
