Gold’s bullish slog has been tortuous, even if there has never been much doubt about where it’s headed. The chart shows an 1875.20 target for the August contract that we’ve used to stay on the right side of the market and to keep the many setbacks along the way in perspective. A pullback to the red line at 1771.80 would set up a tempting ‘mechanical’ buying opportunity, but we shouldn’t expect the market to oblige just because we’ve proven our patience. We’ll continue to scalp off the Hidden Pivot levels with timely posts in the chat room, but getting a piece of the final thrust to D won’t be easy because gold is finally attracting its fair share of bulls. _______ UPDATE (Jul 14, 8:42 p.m. EDT): The pattern shown in this chart, with a target at 1825.90, can be used to get aboard as the futures slowly make their way toward the more ambitious target flagged above. The A-B impulse leg is not exactly a killer, but it looks strong enough to favor mechanical entries on pullbacks to any of the three Hidden Pivot levels: p, p2 or D. Stay tuned to the chat room for timely ideas.
GCQ20 – August Gold (Last:1812.30)