The current forecast calls for more slippage over the near term to at least 1141.30, but with the dollar setting up for a correction, we should keep an open mind about gold’s bullish potential. Most immediately, and assuming the 1165.40 point ‘C’ low of the pattern shown is not breached first [Update: It was, decisively], that would imply an upthrust to at least 1179.40. That’s a Hidden Pivot resistance, and it should exhibit very precise stopping power, since the 1172.40 mindpoint pivot with which it’s associated precisely contained the last, minor upthrust. If the futures easily push past it we could take further encouragement, even if it would require an uncorrected surge exceeding 1202.80 to tip the odds decisively in favor of bulls. _______ UPDATE (9:14 a.m. EST): I overlooked this target earlier, but my trading partner, John Boutiette, pointed it out to me this morning. It is clean and compelling — and therefore potentially important: 1137.50, which caught the low of this morning’s $30 dive within 0.40. Take a gander at the pattern on the daily chart: A=1438.30 (8/28/13); B=1185.00 (12/31/13); C=1390.80 (3/17/14).
