Like September Silver, August Gold relapsed today after failing to reach a minor rally target that should have been a lay-up. However, for technical reasons I won’t go into right now, the net result is not quite as threatening. It at least allows me to offer a bullish scenario, albeit one that will require gold to leap strongly before I wax enthusiastic again. Specifically, I’ll stipulate that the futures must thrust above the 1245.10 peak labeled in the chart (see inset). Otherwise we’ll have to assume that the downtrend is likely to continue to at least D=1192.70, a Hidden Pivot destination that has been six weeks in coming.
