Not-So-Awful News Concerning Gold

April 12, 2019

Gold got whacked Thursday as it so often does — i.e., at the apex of a rally that may have encouraged a bullish thought or two in the minds of some investors.

Alas, the worst selloff we’ve seen in — well, it’s actually been only two weeks — socked the June contract with an $18 loss. In the accompanying chart, some might discern a head-and-shoulders kinda thing going on in the ups and downs of 2019. If you're believer in these patterns — and I am not, since they are everywhere one wants to see them — they imply that a downdraft is coming that could take the futures down to as low as 1220.  If it’s any consolation, that would not be much of a victory for bears (aka the Bad Guys), since it would amount to a decline of less than 6%. For the time being, however, I’ll suggest sticking with the 1262.70 target that has obtained for the last two weeks. It is my minimum downside objective and worth bottom-fishing. There's a chance bulls could find some gumption at 1279.40, the pattern’s ‘secondary Hidden Pivot support. 

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One cubic foot of gold weighs more than half a ton (1,306 pounds).