Gold bulls are used to being abused, so we shouldn’t be terribly surprised if the futures retrace 100% of the briefly encouraging, 700-point rally that unfolded during the month of August. It was great fun while it lasted, but there was no way an investable asset that pays no interest was going to compete with Treasury yields that have been setting 20-year highs. If it’s any consolation, here’s a weekly chart that says the bear market will end if and when prices come down to the 3559 target of this pattern. It doesn’t have to be that bad, either, since a rally in the interim above 4470.80 could put bulls back in charge.
$GCZ26 – December Gold (Last:4133.70)
