As we speak, spot gold is up nearly $27, and has traded as much as $55 or 4.1% off of the overnight low at $1338.41.
Most significantly, however, is the fact that the plunge in gold tested but did not violate the April 15 multi-year low at $1321.50.
Instead, gold has reversed with power to the upside, and is confronting its prior recovery-rally peak at $1393.40 hit on May 16.
If gold hurdles and sustains above $1393.40, my work will trigger initial signals that a much more powerful-rally period has commenced in gold and the SPDR Gold Shares (GLD).
Should such a signal emerge, gold should return quickly to test the May breakdown plateau at $1440.
Of course, much will depend on the micro-pattern that is developing off of this morning's low, which will provide us with clues about the "real" direction of gold prices going forward.