Since the Fed ‘announcement’ was a fraud, we have to assume that Gold’s selloff in reaction to it was also a fraud. If my logic is correct, the 1238.90 rally target we’ve been using is intact (even if a mechanical ‘buy’ at the 1208.60 midpoint pivot would have gotten crushed. See chart accompanying Wednesday’s tout.) Let me now introduce a lesser ABC pattern, also bullish, that is speculative because it lacks a point ‘C’. You can fill in the blanks when the low is in, but the important thing to keep in mind is that any push past the midpoint pivot would put the ‘D’ target with which it’s associated in play. Traders looking to get long should note that even on the 60-minute chart, there are several tiny ‘external’ peaks that would lend themselves to a camouflage entry. ______UPDATE (6:32 p.m.): The futures eked out yet another low, but as long as they hold above A=1180.50, the analysis above can stand. _______ UPDATE (April 10, 10:20 a.m. EDT): Gold has surged higher this morning after having bottomed at 1192.40 on Thursday. Using this as a point ‘C’ low for the pattern shown yields a midpoint p resistance at 1214.40. It can serve for now as a minimum upside objective for the near term. Its D sibling lies at 1236.40, close enough to the original target at 1238.90 to suggest the two together will magnetically draw gold higher.
