Bulls were on the run once again on Monday, headed for a test of support near the point ‘C’ low of what had been a promising rally pattern projecting to as high as 1281.50. I have put that target in boldface green because it is still viable in theory. However, a breach of the ‘C’ low would portend more slippage to an even more important low at 1182.60 recorded in late January. We shouldn’t be too optimistic that this structural support will hold if it’s hit. However, it wouldn’t be unusual for gold to challenge the faithful with a dip below it before rallying strongly enough to encourage the kind of false hopes we’ve been nurturing since 2011.
