Gold futures held their own Tuesday even though the stock market’s strong rebound from recent Brexit lows might have been expected to put pressure on bullion. Look for more consolidation for at least the next 3-5 days, since the recent top at 1362.60 precisely completed a rally pattern that took three weeks to play out. The next leg up should be good for a ride to the 1382.20 target of the big ABC pattern shown. At present, a pullback to the 1240.50 green line with which it is associated would be the most logical place to get long ‘mechanically’, using a stop at 1193.20. The size of the stop would dictate using a ‘camouflage’ trigger on a chart of much smaller degree, but there’s also a chance that the pullback might not come down to 1240.50. ‘Camouflage’ would solve that problem as well, possibly using the midpoint support or ‘d’ target of a minor correction pattern. ______ UPDATE (June 29): A tedious day left the forecast and analysis above unchanged. _______ UPDATE (June 30, 8:24 p.m.) Rinse and repeat. However, gold’s ability to hang tough these last few days despite the upward onslaught of the stock market has been encouraging and is decidedly bullish.
