GCZ20 – December Gold (Last:1875.20)

Gold is trading exactly where it was in mid-July, a long-term hold for investors with plenty of patience. The lack of upward progress tempts one to say that it is untradeable, but this is untrue. The chart shows four ‘mechanical’ buy signals  over the last two weeks that could have produced $7600 in profits per contract for anyone who simply bought when the futures came down to the green line, then sold when they hit the red line. At Friday’s close the futures had embarked on yet another repeat of this money-maker. A $1900 profit seemed so certain, in fact, that any experienced trader would have avoided the trade like the plague. We’ll be interested to see how December Gold extricates itself from a pattern that has become suspiciously predictable. Stay tuned. _______ UPDATE (Oct 28, 10:53): Today’s dive shifted the burden of proof back to bulls. The day-ending breach of p=1873.10 in this chart implies the futures are headed down to at least p2=1839.90, or to D=1806.70 if any lower.  If a rally intervenes and reaches the green line, it would trigger a mechanical short, stop 1939.50. _____ UPDATE (Oct 29, 10:13 p.m.): A thrust exceeding 1885.10 today would turn the short-term picture mildly bullish. Even so, the bearish targets identified above will remain valid unless C=1939.40 is exceeded to the upside