August Gold tripped a theoretical buy signal last week when it touched the green line (1809.8). We won’t rush to get long(er), but the persistence with which the future head-butted the line could be likened to a gentleman caller who rings the doorbell four or five times to announce himself. The pullbacks were shallow as well, strongly implying bulls will dominate for the next couple of weeks if not longer. I’ll suggest using p=1869.40 as a minimum upside projection for now and trading with a bullish bias, but we’ll need to see a convincing punch through it before we allow ourselves to enthuse over a further push to D=1988.70. ______ UPDATE (Jul 12, 6:37 p.m. ET): The futures’ pathetic struggle at the green line today reminded me that I’d resolved not to be any more bullish in my comments than is justified by the technical evidence. My earlier assertion that the so-far shallow pullback after tripping a buy signal portends a week or two of strength was overreaching. We’ll continue to use 1869.40 as a target, but I’m not offering it as a done deal. In any event, the August contract would need to close for two consecutive days above x to merit a more upbeat outlook. ______ UPDATE (Jul 14, 9:44 a.m.): Gold has popped to 1831.10 this morning, high enough to break free of the green line’s gravity. You can use p=1869.4o as a minimum upside target for now.
GCQ21 – August Gold (Last:1826.30)