The futures have dipped slightly below the green line at 1830.60, quietly signaling a drop to at least 1781.40, a midpoint Hidden Pivot support shown in the chart. Bears have not exactly romped since gold topped in August at 2099, but they have dominated the action, often to devastating effect on those occasional days when conditions were right for a takedown. The longer-term charts are unambiguously bullish, but it would appear bullion has been biding its time, presumably waiting for a signal change in the Big Picture. It is remarkable that bitcoin has usurped gold’s historical role as a hedge against inflation. This anomaly seems unlikely to last, but for the time being bullion’s loyal supporters will have to get used to seeing it underperform cryptocurrency that is intrinsically valueless. ______ UPDATE (Dec 15, 8:32 a.m.): Here’s a new chart that corrects the erroneous ‘B’ low in the original along with its downside targets. The result lowers p and D by around $5 to, respectively, 1776.80 and 1673.7. This does NOT mean I am more bearish. In fact, other than on rigged ‘takedown’ days, bears seem to be struggling for every inch. Moreover, if today’s so-far gratuitous rally gets rolling and exceeds 1879.80, that would invalidate the new targets. A further push exceeding 1902.40 would generate the first impulse leg we’ve seen on the daily chart in ages. _______ UPDATE (Dec 17, 1:22 p.m.): This morning’s strong rally missed creating the impulse leg we’d wanted (see above) by five ticks. Bulls would seem to have the gumption to get it done, but with gold, it will always be a matter of ‘trust but verify’. Proof therefore awaits.
GCG21 – February Gold (Last:1890.00)