I’ve tried very hard lately to give gold the benefit of the doubt, seizing on every bullish impulse leg on the hourly chart as the possible start of something good. The weekly chart leaves less room for optimism, however. In fact, it tripped a ‘mechanical short’ from 1128.30 last week, stop 1180.00, for a possible ride to as low as 971.20. Nothing less than a rally exceeding July 11’s 1348.90 peak would suffice to put the bear in retreat, although I’ll continue to look for encouraging signs in much less powerful rallies. Most immediately, that would imply a push past May’s 1234.00 peak. If bulls can’t muster this feat by early September, it would provide fresh evidence that the bear market is still very much with us.
