Gold’s rally turned sloppy last week after tripping a theoretical buy signal tied to a rally target at 2083.90. It wouldn’t be the first time this vehicle has disappointed us just as it seemed to be warming up. Still, the pullback from the recent high has been feeble so far, suggesting bulls are simply biding their time while wild-eyed investors remain fixated on FAANG stocks, small-caps and other whimsical themes. The hotties look likely to continue to draw interest away from bullion, since my target for the DJIA, for one, implies higher prices over the near term. Gold can rally at the same time, to be sure, but don’t get your hopes too high for a quick burst to 1880.10, a midpoint pivot shown in the chart that can serve as our minimum upside objective for now. ______ UPDATE (Apr 29, 10:22 p.m.): Looking like its nasty old self, gold took a gratuitous mid-morning plunge that has put the burden of proof back on bulls for the time being. We’ll set the bar at 1796.40 so that we don’t get suckered in. That’s a tick above an ‘external’ peak recorded April 23 on the way down.
GCM21 – June Gold (Last:1767.10)