Straight Talk With Targets For Gold Bulls

December 16, 2016

An 1105.80 downside target has obtained since November 18, when Feb Gold tripped a menacing sell signal just above 1200.  On redrawing the chart, however, I find that the target should have been given as 1108.70 with 1086.60 as an alternative if Hidden Pivot support at the higher number fails. 

Were that last number to be reached, gold will have given up 90% of the gains achieved since the rally commenced exactly a year ago. And if the 1055.20 low that marked the beginning of the six-month rally to 1387.10 is breached, it would return our focus to an 820 target first aired here in 2013 when the futures were trading around 1280. However, I won’t pull it out of mothballs until such time as 1055.20 gives way, since there’s always a possibility that Mr. Market will test bulls to their utmost before the long-term uptrend dating back nearly 15 years resumes.

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China is the world’s biggest gold producer with more than 355 tons annually. Australia is second.