Although it was mildly encouraging yesterday that a minor bearish pattern failed by a few dollars to reach its target, I’m going to stick with the 1263.10 target nonetheless. Hidden Pivots aside, you need only look at the chart (inset) to appreciate the mountainous supply of shares that has been weighing gold down. It’s nothing that a rally today to 1302.60 wouldn’t ameliorate, but barring that, we should expect to see bears in control for the time being. Keep in mind that the cause of the rally was the running of stops placed just beneath the key low at 1277.40 recorded in late March. Considering how many hopeful bulls must have gotten shaken loose down there, the relatively feeble, $7 rally so far ranks as a disappointment. _______ UPDATE (April 24, 12:55 a.m. ET): Given Wednesday’s turgid price action, the analysis above can stand without change.
