Gold Market Wire
News, analysis and commentary for gold traders and investors
God Market Update
Can Gold Break the "Snooze-Spell"?
January 26, 2020 - (Gold Market Wire) - Gold hasn't been a hot-bed of excitement for some time now. Even if we look at the latest move off the lows, what do we have? A journey from $1760 (intra-day) to $1840...or roughly 4%. And that's over almost two months. In that time the market also gave us so much side ways chop the only way to profit was to take a small sized position and forget about the whole thing except to look at the market once a day on the close. Trading, per se, wasn't something that the market fostered, or even encouraged.
But here we are now, with a chance to see if the market can wake up and start to do something other than top and and move back to $1800.
Our downtrend has been hewn from a longer history, which we display here:
It's a downtrend with a history, so we'll be very interested to see its performance. If we can get a weekly closing above it, we may actually have a market worth trading again...outside the arena of being short volatility. For the more seasoned and cynical - who think we will just revert to the 'mean', a short spec is in order. The fact that Gold has slept through the whole recent hiatus of Ukraine is a factor that must be taken into consideration. A short-spec could be covered if the rally takes place.
Frankly, there's little in it that we can see. We still like Gold and Silver (especially) over the medium to long term, but right now, Crude Oil and Wheat are where the action is.