August 7, 2020 - (Gold Market Wire) - Silver is off, Gold is settling down and a week for the record books comes to a close today. Time for a small piece of short-term reflection. Let's look at our trend line and see how it's shaping up.

‍

The chart we drew up yesterday in https://www.goldmarketwire.com/articles/silver-leaps-higher-again-as-bull-keeps-on-charging has served us well in identifying a short-term pullback point, with our August 3 "pivot" point helping us identify the trend line in motion. So far, so good. It's certainly a steep line, but these are extraordinary times. It's hard to see who will want to go home flat over the weekend, let alone short. That leaves the Bullish case in fairly firm control, although profit-takers will also make a showing.

Of course, the present environment is also where the "tree shakers" love to come out of the woodwork and drill the market and run the stops that everyone has been trailing with them. That means firm hands and a lack of margin are the order of the day. For those who've used (reasonable, we hope) leverage this week, it might be place to take some of that out of the position. The trailing stop isn't a bad strategy, but when they get "popped" in a bull market like this, it's also a good idea to have a fixed re-entry point to accompany the stop-loss, to get back in the market. Then you won't have to wake up to an Asian or European market that has taken us right back up.

Just to add to the mix, going into the weekend, one 'notable' Gold aficionado has claimed that Biden is about to get his walking papers from the Presidential race. It would hardly be surprising, as he has become a true liability to the Democrats' campaign. The Democrats presently have only the anti-Trump vote going for them, but have done nothing to incentivize the critical 10% of swing voters who really decide elections. So, the point that makes this relevant for Gold traders is: suppose they pick someone 'credible'....someone who looks like they could actually run a decent last-minute campaign and not be a liability, the way Biden is? Well, that increases their odds of victory. And that means another leg lower on the US Dollar, as the world of MMT takes another step closer to the White House and Federal Reserve... and that means more wind at Gold's back.

Food for thought on a Friday.

‍