/GC (gold futures) hit the bounce target posted yesterday. /GC was pointed out an objective long entry on the pullback to the 1253 support level for a quick trade up to the next target just below the 1264.84 resistance level. That’s good for a profit of about $1,100 for each GC contract. I’ve added another price target around the 1273 level which I think will be hit in the coming days/weeks but my near-term bullishness is tempered at this time as there is potential (unconfirmed) negative divergence building on the 60-minute time frame. Previous & updated 60-minute charts:

Should those divergences get taken out with the RSI & MACD taking out the previous highs soon, that would be bullish. If the divergences are confirmed (via a bearish crossover on the MACD that puts in a lower high), a pullback to the 1253 & quite possible the 1247 support levels would be likely. As an active trader I am standing aside the gold trade for now after my target was hit earlier today. Typical swing traders, trend traders & investors shouldn’t be overly concerned with these developments other than maybe to add to a position should gold pullback to support (and the charts confirm a likely reversal at that time) or if gold powers higher from here & continues to firm up the intermediate to longer-term bullish case on the more significant daily time frame.