With just one more moderate selloff, gold will have given up 90% of the $300 gain it achieved in the first half of 2016. We’ve been using a downside target just above $1100 as a minimum price objective since shortly after bullion spiked on election night. That turns out to have been one of the nastiest bull traps that bullion traders have seen in a long while. As always, there are technical circumstances in which bullion could conceivably become a screaming buy. However, the charts offer little encouragement for this at the moment. Actually, we’ll probably know by year’s end whether a short to $820 will be the more promising trade.
