Considering how weak the stock market and the dollar were yesterday, we should have expected more of a pop in gold. Still, the direction was up, the rally was mildly impulsive on the hourly chart, and that is surely progress. The rally pattern shown is more than a little gnarly, but it looks sufficiently serviceable to allow a projection to 1327.60 over the near term. Of course, the futures will first have to get past the midpopint resistance at 1301.30, and with it an ‘external’ peak at 1299.20 that stymied bulls yesterday. My hunch is that once the futures have exceeded 1301.30 by as little as a point, the move to 1327.60 will progress swiftly.
