Gold’s rallies continue to lack conviction, with most minor thrusts falling shy of modest Hidden Pivot benchmarks. We’ll give bulls the benefit of the doubt nonetheless, since they have at least managed to eke out modest gains toward the end of the day. Yesterday they tripped a minor buy signal at 1319.90 in the late afternoon (see inset), but could not subsequently muster the additional 5-point climb it would have taken to challenge a midpoint resistance at 1325.10. That’ll be our minimum objective as the week draws to a close, and if it’s exceeded by at least three ticks, camouflageurs should look for a micro-ABC rally to take them higher. Short-term potential thereafter would be an additional 10 points, but you should take the position home over the weekend only if you’re halfway to the target when the bell rings. ________ UPDATE (9:53 a.m. EDT): Gold popped fleetingly to 1326.00 this morning but has since retreated so swiftly that there have been zero camo buying signals this far, even on the one-minute chart. This is not bullish action, but rather, distributive — rallies that are being ginned up to tease, tempt and titillate. We can participate if we choose, even making money when we are ‘wrong’, but there are obviously better vehicles to trade. For now, you should keep my 1250.50 downside target in mind when these presumably phony rallies unfold. _______ UPDATE (October 7, 2:36 a.m. EDT): No change. The best thing Gold has going for, technically speaking, is that December Silver still looks somewhat more bullish at the moment than December Gold looks bearish.
