Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
A Difficult Gold Chart
January 13, 2020 - (Gold Market Wire) - The Gold market is beset by indecision that is growing daily. The tide is turning against the FANG stocks and many are seeing it as a prelude to a significant stock market sell-off. That, in turn, could cause Gold to wipe out. No doubt this is a reasonable and a possible scenario, and those with extreme length and/or margin might consider re-sizing positions when taking that on board.
Of course, on the other side of the equation, roughly half the US population (where a significant amount of the Gold trade originates) is convinced that the electoral/democratic process inn the USA is at an end. That is certainly a fundamental under-pinning to the Gold market, as it belies a lack of confidence in Government...and a whole lot more. That, of course, is what a Gold bull feeds on. In that consideration - one wonders why we are not at $2,500.
The day to day world offers us a confused picture and our chart reflects that.
Our old friend, the 50-day moving avergae is waving the flag at us, and we must re-consider it as a first challenge. It has lifted us before...although on the road to eventual disappointment, it has still performed. From the $1825 level, we can see some fairly clear horizontal support...in addition to our trend line.
Frankly, a bit of a mess. But it is what we have to work with. Right now we look to be mid-stream between the two markers...waiting for a move.