Gold was buoyant for only about 20 minutes yesterday, but that was sufficient to push it above the 1185.70 rally target flagged here in the middle of the night. By day’s end the gain had been trimmed to a modest $10 or so, but at least the futures were moving in the right direction. Now let’s see if they can reach the 1197.70 target shown. This goal is conservative, but that’s appropriate, since there wasn’t enough buying power on Monday to reach even a minor midpoint resistance, let alone breach it. The pivot has migrated lower and now sits at 1192.00. As always, an easy move through p would suggest a continuation of the trend to its ‘D’ sibling — in this case, 1197.70. _______ UPDATE (May 5, 8:23 p.m.): The rally is getting shakier, since yesterday’s thrust failed to exceed any new ‘external’ peaks on the hourly chart. The futures will need to touch 1207.50 to accomplish this today; otherwise, look for a relapse to at least 1180.20, a midpoint support that comes from the hourly chart (a=1206.50 on 4/30). ______ UPDATE (May 6, 11:06 p.m.): Yesterday’s spasm traced out a gratuitous hump on the intraday charts that was amounted to much less than we might have hoped. The good news is that the 1185.00 Hidden Pivot support shown has a chance to stanch the blood, at least for the time being. ________ UPDATE (May 7, 9:01 a.m.): Gold rarely fails to disappoint, and so it was last night. Although bottom-fishing the 1180.20 support I’d noted above could have been worth as much as $470 per contract to anyone nimble enough to exit on the fleeting spike to 1186.90 that followed, this would have happened AFTER sellers had already trashed the 1185.00 support featured in the chart. In the last six hours, Gold has traced out four entirely gratuitous swings of 7 to 9 points. However, the breach of 1185.00 warns that, once the wildness subsides, more weakness is likely.
