Although gold ended the week on an upswing, this occurred within the visual context of the corrective pattern shown in the chart. The pattern’s A-B impulse leg is formidable, and that’s why we shouldn’t get too excited about the approximately $30 rally that has unfolded since the futures bottomed at $1490 last week. Note that that rally has generated a somewhat enticing ‘mechanical’ short at the green line (1513.70). We ignored it nonetheless because it was a risky bet to have taken home over the weekend. Let’s see what Sunday night brings before we act. As of early afternoon, there were no disconcerting geopolitical developments that might send the markets into spasms. Iran’s Houthi proxies were threatening another attack on Saudi oil facilities, but that will have registered only dimly on Wall Street’s go-go trade desks. _______ UPDATE (Sep 23, 5:52 p.m.): The futures have turned sharply from within a hair of stopping out the bullish pattern with a 1622.90 target first identified here nearly six weeks ago. For now, use its 1555.90 midpoint pivot as a minimum objective (and not for the first time, either). _______ UPDATE (Sep 25, 9:27 pm.): The futures were in a so-far feeble bounce Wednesday night after getting socked for a $23 loss intraday. The rally began in a too-obvious place just above some minor lows from last week, raising the odds of another swoon to put in a good bottom.
GCZ19 – December Gold (Last:1529.50)