Don't Be Disappointed By Gold's Price Action

Gold’s ups and downs have grown increasingly tiresome, largely because the rallies are so disappointing and the setbacks so punitive. But look at the bright side: If bullion can hold its own at a time when institutional investors continue to shun it, just think how well it’s going to perform when the portfolio managers finally get their heads out of their butts. Meanwhile, take a look at the chart in order to put the piddling decline of the last two weeks in proper perspective. It began from exactly where it should have — i.e., a major midpoint Hidden Pivot resistance — and the weakness since has not retraced even half of the run-up from the May 9 low.

The visual picture suggests a boring but essential consolidation within a much larger, bullish pattern. The futures would become a ‘mechanical’ buy for the third time since March if they were to fall to the green line, but if you did so on the initial signal, you have nothing to worry about. Your stop-loss is at 1133,20, and your price objective is 1464.80.

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