A strong close last week might have left me feeling less, um, disgusted with gold. Alas, the December contract took a $30 dive on Friday, and although it recovered some of it by the bell, the bounce wasn’t strong enough to generate much enthusiasm for the week ahead. For now I’ll suggest using the bearish pattern shown in the chart (inset). It has yet to offer up any ‘mechanical’ shorting opportunities enroute to the 1633.50 target, so anything we do will probably have to come from the lesser charts. It’s bound to be a bumpy ride, since bears have not exactly been knocking ’em dead either in recent months.
GCZ21 – December Gold (Last:1785.00)