Today’s chart is intended to reassure you that gold means bulls no harm, even if the obvious consolidation since June bids fair to bore us to death. Notice that the futures could take out the Brexit low at 1259 and still have room on the downside, all the way to 1207, to maintain the long-term-bullish look of the chart. But it’s pointless for us to begin each day fraught with anxiety about gold’s all-but-inevitable blastoff for $1400 and beyond, especially when we are unable to say what, exactly, will cause it to happen. Perhaps it will be an earth-shaking headline from the geopolitical or financial world? In any event, it is the pregnant pause that we are witnessing now, and a bullish outcome for gold should not be held in doubt.
