Gold futures surged $20 today, exceeding by nearly $3 the ambitious, 1289.10 rally target I’d flagged two days earlier. Moreover, the December contract appeared to be consolidating at the target line, suggesting that another leg up is coming. If so, the rally would need to hit 1313.00 to refresh the bullish energy of the hourly chart. That’s where the first ‘external’ peak above these levels lies (see inset), and any uptrend destined for still greater heights must easily exceed it to bolster the case. Although I’d noted that the futures tripped a ‘mechanical’ entry a day earlier at 1274.60, I haven’t established a tracking position because there were no reports in the chat room of any subscriber having gotten aboard on the dip. Even so, several traders reported using the target to bolster their confidence while holding long positions on the way up. ________ UPDATE (Nov 3, 7:46 a.m. ET): After a failed rally attempt overnight that fell $1.30 shy of Wednesday’s 1309.30 peak, the futures have gotten whacked. The higher of the two peaks missed hitting the 1313.00 benchmark I’d set to refresh the bullish energy of the intraday charts by a country mile. The so far $23 selloff that has ensued is bearishly impulsive on charts of 15-minute degree or less and projects to a minimum 1284.30 (a=1303.60 at 3:15 a.m.; b=1292.50 at 5:00 a.m.).
