Gold Price Tiptoes Toward The Precipice

August 31, 2016

The pattern shown, with a minor downside target at 1302.70, looks like it will provide the most useful perspective for the very near-term.  Neither the midpoint pivot nor the secondary (respectively, the red and green line) showed any discernible support, and that’s why I expect the selling to continue down to at least 1302.70.

Also, the midpoint pivot produced a would-be profitable ‘mechanical’ short, as I expect the secondary pivot at 1313.20 to do now. We can worry about the demeanor of this presumptive correction if and when 1302.70 is easily or decisively exceeded. Were that to occur, the futures would be likely to grope their way down to 1259.10, the June 24 Brexit launching pad, in search of traction.

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The periodic symbol for gold is AU which come from the Latin for gold aurum.

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