Gold Market Wire
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An Indecisive Gold Market Looks for Direction
May 4, 2020 - (Gold Market Wire) - Gold's indecision is showing this European a.m., as the symmetrical triangle gets formed. It's a pattern formation that usually means a change is coming, but which way can't be established yet.
Higher lows and lower highs makes for an indecisive market. Still, Friday's buying on the trip to $1670 certainly lends a bullish air to the proceedings, and there is a slight favor to the upside as the triangle has been formed in an overall bullish environment. But equities are opening up weak this a.m., with most markets off around 1%. It certainly looks like a calm before a storm. If we meander for a few days volatility will likely get sold off, and that could by an opportunity to pick up ATM premium, awaiting the outcome. At 21% for June it still remains rich.
The market has a six month higher high pattern in the bag, but the close wasn't above the previous month's high, which is a negative. The buying on the move to $1670 was encouraging for the bulls, but the last fortnight left several attempts to reclaim the April 14 high at $1748.19 in the bin. No wonder the market looks indecisive.
We'll have to wait and see if COMEX wants to follow through...and what it means for the triangle.