A Bloomberg headline on Friday averred that gold had “plunged” due to the “mysterious” sale of four million ounces. The reality was somewhat different, as the chart shows. Gold dove, to be sure, but not very far in relation to price action over the last couple of months. Concerning the mysterious seller, we’re probably better off not knowing, since the hacks who report the news would probably find a way to trace the trade back to Trump, or to the Swiss central bank. Or your grandma. And then where would we be? Anyway, the chart says as much as we need to know right now — i.e., that bulls and bears have been locked in a duel, trying to kill each other with rubber-tipped scissors. The 1254.10 downside target we’ve been using for weeks remains viable in the meantime, but we can put it aside if the futures rally to touch 1293.00. _______ UPDATE (Nov 15, 12:26 p.m.): Today’s gratuitously nasty head-fake actually created a picture-perfect impulse leg on the hourly chart, so bulls needn’t quite despair. Let’s see if they can leverage this set-up for all it’s worth — namely, a pop to the 1295.80 target.
_______ UPDATE (Nov 16, 5:15 p.m.): Thursday’s sloppy histrionics slightly lowered the target, to 1294.20. A push past p=1284.60 would be a downpayment on it.
