Gold did not rebound as sharply as silver off Monday’s lows, even if the December contract bullishly failed to achieve a 1277.10 downside target before turning around. The reversal has yet to exceed any ‘external’ peaks on the hourly chart (see inset), however, and it will now take a strong push to achieve this feat. The first peak lies at 1289.50, but buyers would need to get past the second, at 1296.50, to suggest they’ve got the moxie to go on the offensive. Significantly higher targets would then become plausible, but we’ll look for a more modest show of strength before we even consider those targets.
