Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Close...but No Cigar!
December 29, 2020 - (Gold Market Wire) - Close doesn't cut it in trading, and the overhanging downtrend is still 'hanging' in there. So, while we've made it over the 50-day moving average, we still haven't cleared the downtrend. While we've touched the 100-day moving average and briefly bettered it intra-day...we still haven't started to rally. We said it last week, clearly...until that downtrend is cleared, we aren't going anywhere.
That is a powerful line with an established position. Yes, we are encouraged by the 50-day m.a. cross, and the inside rally has developed...but the heavy lifting still remains. Yes, we have congestion, and we like that formation, as it can proceed an breakout. We remain bullish on Gold, the market has failed to collapse down under $1700 and really challenge everyone to throw in the towel. That tells us that few position takers are comfortable getting out of the market on a long-term basis, and that is encouraging. If anything, our flirtation down to $1769 was weak. And so we sit, somewhat becalmed as the year drifts to a close. There is little profit to be had by yearning for action. Patience remains the order of the day for the trading book. Gold still looks good, in the medium and long term.