GCZ26 – December Gold (Last:4190.50)

With the futures perched on a shaky ledge and interest rates spiraling higher, the bearish case for gold seems almost too pat to take seriously. Accordingly, I’ve drawn a bullish pattern that implies the next big move will be back up to the $5000 level (x=4954.30). I expect a false breakdown first that would relocate the pattern’s point ‘C’ low somewhat beneath the current 4273, but we’ll make the adjustment when it becomes necessary. Alternatively, my worst case for the near term would be slippage over the next two weeks to 4173, a voodoo number. A cautious outlook is warranted in any event because of December Gold’s narrow failure ten days ago to trigger a conventional ‘buy’ at the green line, x=4436.60. _______ UPDATE (Sep 28, 7:01):  Gold has gotten gratuitously savaged by chimps and chicken-shits overnight, bottoming quite precisely at the 4173 voodoo number drum-rolled above. I would not have expected the futures to get there so soon, but oh well. Be careful if you got long at the low on my say-so, since you’ve already been gifted with a theoretical profit of as much as $2000 per contract. Think of the voodoo support as being more like cookie batter than like granite.