Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
38.2% Fibonacci Retracement Touched
November 30, 2020 - (Gold Market Wire) - Gold has touched the 2nd Fibonacci Retracement at 1766, as weakness persists. It is a not unlikely place to stop for a while, and the potential for a bounce (not a recovery!) should increase now.
We'll use this opportunity to shed a second 1/3 of the short position established at $1850, and hold the last third in reserve. Even market wipeouts don't go in completely straight lines, even though this one has been pretty much a free-fall from $1850, after the grinding multi-month decline. The market remains weak, but, as the saying goes, no one ever went broke taking a profit. The 50% retracement at $1670.48 is taking on a critical dimension, and if it fails, we could be in for a protracted period of weakness, that could last several weeks and even months. The damage to Gold is significant, and it has happened in the face of US Dollar weakness - - not a good sign for higher prices.