The December contract, so light and frolicsome recently, turned leaden on Friday with the futures about $17 below a promising looking rally target at 2107.10. We can focus on the lesser charts to tell us whether the weakness is likely to develop into something serious. As things stand, the bounce from the intraday low at 2024.80 triggered a ‘mechanical’ short at 2040.50, stop 2051.10. I didn’t mention this in the chat room, however, because it was late in the day and because the buying looked pretty spirited. Now, a print exceeding c=2051.00 on Sunday night would stop out the theoretical short — exactly what we should want to happen if we are going to continue to trade with a bullish bias. The 2107.10 target will remain viable in theory unless 1927.50 is breached to the downside, but as a practical matter it would start to dim below 2000. _______ UPDATE (Aug 10, 9:04 p.m. ET): Night owls can try bottom-fishing at the 2010.60 target shown in this chart. An rABC pattern where a= 2027.80 on the hourly chart (8/10, 3:00 p.m. ET), is the best way to keep entry risk under tight control, but if you are unfamiliar with the tactic, use a simple, 2010.10 stop-loss. The futures looked sickly in after-hours trading, so plan on taking at least a partial profit if the trade goes your way modestly. _______ UPDATE (Aug 11, 8:48 a.m.): Gold got hit hard overnight with selling that is continuing this morning. The December contract looks bound for 1954.60, a Hidden Pivot target shown in this chart, but if it gives way, the slide could continue to as low as 1937.40 (b=1991.40).
GCZ20 – December Gold (Last:1970.10)