Although I remain willing to give gold’s rallies the benefit of the doubt, the one shown is about as dubious as they come. It was literally in the final seconds of the trading week that the futures shot above a technically significant ‘external’ peak at 1108.00, generating a minor bullish impulse leg. It is plausible, at least theoretically, to infer that this is prelude to a move to as high as 1186.40, the D target of a pattern begun on the daily chart on August 4 from 1080.20. However, we’ll let bulls prove their case one small step at a time, which in this instance would call for the completion of the minor (and still unformed) ABC pattern shown at the rightmost edge of the chart. The pattern, subtle as it is, may afford night owls a chance to get aboard using ‘camouflage’ Sunday night, assuming the rally continues.
