The chart shown puts the $17 decline from the recent high in perspective. Although it has turned the hourly chart bearishly impulsive, this poses no threat to the six-week-old consolidation begun following the Brexit spike. Gold is simply biding its time until conditions are favorable for a follow-through to the 1424.60 target shown. In the meantime, we can fine-tune our assessment of the current weakness by monitoring any interaction with the 1352.10 target of the abc downtrend at the rightmost edge of the chart. If this minor Hidden Pivot support is touched, it would re-energize sellers by exceeding an external low at 1353.70. It would also put the green line at 1342.20 in play as a place to get long ‘mechanically,’ so you should stay tuned to that chat room for further guidance if and when that occurs.
