My headlined enthusiasm for gold a few weeks ago looks to have been premature, as was my conjecture that the takedown artists who sometimes gang up on precious metals were finally outmatched by a waxing bull market. It would appear they are still very much in control, although I doubt they’ll be able to push quotes much below 1600. That would represent a nearly 20% correction off last August’s 2063 high — perhaps all that could be imagined, given the deafening drumbeat these days warning of a horrific inflation that supposedly lies ahead. For now, I’ll recommend using p2=1700.70 (see inset) as a minimum downside projection for the near term. However, if this Hidden Pivot is easily breached, brace for more downside to at least D=1627.80. Alternatively, an unpaused upthrust exceeding 1826.40 would give bulls some breathing room, although it would not negate the bearish targets; that would require a print at 1919.30. _______ UPDATE (Jun 22, 11:34 p.m.): Bull have hung in there at p=1773.50, but the so far $12 breach of this midpoint Hidden Pivot suggests it will be a losing battle. Let’s see what a new days brings.
GCQ21 – August Gold (Last:1782.90)