News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
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US Bans American Banks from Purchasing Russian Sovereign Debt
US Bans American Banks from Purchasing Russian Sovereign Debt
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*** GOLD MARKET WIRE ***
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

European Stocks Down More Than 2% in Early Trade

September 20, 2021 - (Gold Market Wire) - European stocks are trading more than 2% lower on the day, as fallout over the diplomatic rupture between the USA and France takes its toll. While many would have assumed that an international incident of serious magnitude, (- the first time in American history that a French Ambassador has ever been recalled from America -), would cause the Metals to rally, that, of course, is not how the markets work. Gold and Silver were being liquidated in anticipation of a large move to cash from all markets; which is exactly what we got.

As we wrote on Thursday:

"there is a feeling that the Metals' sell-off may be some kind of advance warning that equities are about to reverse. We have seen this pattern before over the past 5-7 years or so. The illiquid instruments get hammered first, and then the equities follow. "

That is pretty much what happened.

While Gold and Silver have had a slight recovery, there is little joy for the metals. Silver, it should be noted, is now down about 25% from its high, a little over a year ago - and is flirting with a major support line.

...horizontal support.

We are glad to be on the sidelines, and until we 1) hold the horizontal support and 2) conquer the downtrend line in the above chart - we can see little reason to get off 'the bench' and back into the game. Gold, much like Silver, is approaching an important horizontal support line - which it needs to hold.

...Gold's horizontal support

In a less troubled market, one should consider buying here, but the threat of a stock market sell-off keeps us in a cautious state.

Patience, the discipline that all failed traders forget to cultivate, needs to be done so in spades now. We have no desire to try and "buy a major low" - with the threat of decent equity sell-off looming. We will wait.

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