Although we expect the bad guys to inflict as much pain and doubt on bulls as possible, Friday’s $102 plunge seemed just a tad excessive. The low fell a hair beneath early May’s 2308 low and $4 above round-number support at 2300. Many bulls would have been stopped out there, lightening the load for whatever bounce occurs this week. It may include two or three false starts, since few bulls could have expected the selling to reach the untested levels that it did in a single day. At best, the rebound will mirror the plunge that took place after August Gold slightly exceeded the record high 2471 achieved in mid-April. Any less than that will put the futures in jeopardy of falling another $100 to test a plateau formed there in March.
$GCQ24 – August Gold (Last:2325.00)