Gold’s ascent since bottoming on New Year’s Eve has been more labored than we might have wished, but it has continued to move higher nevertheless. The most meaningful rally target I can cull from the hourly chart is 1275.70, a Hidden Pivot that required a some bending of the rules to create. Even so, I’ll suggest using it as a minimum upside target for the near-term. It is weakly validated by yesterday’s bounce from 1.10 below the midpoint pivot — too far below the pivot, actually, to lend precision to our outlook. However, the bounce itself looks promising — sufficiently robust to reach the 1275.70 target. Because a stall could be fatal, the target must be achieved within the next day or two to keep alive the premise that this rally is different from those that have preceded it in the last two years.
