A pullback in Gold yesterday to the $1320s from the 1348 high. We had been looking at about 1350 plus/minus as an initial objective off the 1181 pivot lows for the truncated 5th wave of the bear cycle. We can see support at $1300 for Spot Gold in the charts right now, in terms of keeping it simple.
Let's keep in mind we just rallied from $1181 to 1348, or about 167 points which is quite a rally. Indeed, February is often a short term cycle low for Gold and has been in years past.
A normal likely corrective wave 2 would be anywhere from 38% on the low end to 61% on the higher end.
Using some basic math, 38% of 167 points is $64 an ounce, giving a possible pivot target of $1284 plus/minus a few.
So bottom line? We remain bullish long term, short term we may have a minor wave 2 pullback to work off some of this 167 dollar rally in
Gold, and 1284 is a 38% fib pivot and 1300 is traditional support.
We may just need to take a rest here for a bit…otherwise, for now, we maintain our $1550 target for 2014.