GCZ19 – December Gold (Last:1470.00)

Gold has been stalled for three months and is getting mighty tiresome. This is notwithstanding an upthrust last week that allowed subscribers who followed my detailed guidance to make a quick $3400 profit on four contracts. The trade was pegged to a 1535.90 target that has helped keep us on the right side of the trend for nearly a month.  If buyers should push past it this week, 1547.60 would be the next stop, and thence 1586.10 (daily chart, A=1412.10 on 8/1). Rather than pretend we have a crystal ball, we’ll simply wait to see what bulls can deliver. So far, considering stocks are in the grip of lotus eaters, bullion has held its own. This is encouraging, but don’t expect much until the bull run in stocks falters. _______ UPDATE (Nov 5, 5:41 p.m. EST): The high and low of gold’s dive today fell within the tedious range of the last month and has not damaged the pattern projecting to our aging target at 1535.90. Psychological damage is another matter, since the selloff, possibly gratuitous, has occurred in the space of just one day. But if we stay focused purely on ‘technicals’, there is not yet any reason to despair. _______ UPDATE (Nov 7, 10:42 p.m.): Sure this is depressing. But even if the so-far $100 selloff from early September’s high had been three times as bad it wouldn’t negate the huge bull move that began from 1208 fifteen months ago.  This nasty correction has a little farther to go before it hits a Hidden Pivot support that could turn gold around. It lies at 1447.50 and can be used to bottom-fish.  It can also serve as a minimum downside target for the moment.