The impressive rally that began the week went nowhere, leaving the futures about where they were in early April. They triggered a weak ‘mechanical’ buy signal at 1718.10 (the green line shown in the chart) on Thursday at the closing bell, but I did not explicitly recommend the trade ahead of the three-day holiday weekend. It implies minimum upside to p=1770.10 over the near term, but we’ll hang back on a possible belated entry until we’ve seen how things open Monday night. The 1713.90 ‘D’ target/support shown in this chart would be a good place to attempt tightly-stopped bottom fishing if it were to occur overnight or early in Tuesday’s session. _______ UPDATE (May 26, 11:06 a.m. EDT): Gold is once again on its knees, too tired to do battle with a rampaging stock market. The Hidden Pivot at 1713.90 noted above yielded a $4 bounce that lasted all of seven minutes — too feeble for any profit taking other than by the nimblest traders. _______ UPDATE (May 26, 9:08 p.m.): Gold has turned to dross yet again, unable to compete against a stock market that has gone loco. You could attempt bottom-fishing near 1680 provided you know your rABCs, but otherwise I’d suggest spectating as the futures fall to as low as 1652.40 over the near term. Here’s the chart.
GCM20 – June Gold (Last:1707.00)