Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Getting a Handle on Silver's Channel
August 7, 2020 - (Gold Market Wire) - Silver is trading down sharply after its recent gain of some 50% in a handful of weeks and we take this opportunity to look at the channel carved out from recent action which may provide a little clarity.
The channel, which has some viable parameters, was run through bottom to top in just 11 sessions, which is pretty strong going, given the width of it. The question now comes as to whether or not the top of the channel will provide a point to bounce off of, or whether we will resume a pathway back into the channel.
Likewise we see Gold moving below our trend line. The bulls will need to find a staging ground to re-group if they don't get a turn-around on the close.
Doubtlessly, the headline news of a build in US jobs of 1.8 million in July has helped calm the metals markets calm down from the there recent vertiginous rise. More jobs means better odds for Trump to win the election, and that brings confidence and stability back to the political scene... as surprising as many may find that. Biden is now an ever-increasing liability, whose candidacy now works to calm the metals arena. In short - if they run Biden, Trump's chances are going up. The Democrats also are now firmly associated with ANTIFA, BLM and a near romantic obsession with socialism, which the Gold market will react to... as it should. the fact that the Democrats have hung their political hat on the advocacy of social disorder, rioting and looting may turn out to be a very bad miscalculation. The US Dollar has nowhere to go under a Democratic administration but straight down.
But it should be noted that even under a Trump victory, a global monetary crisis will still be unavoidable.
Gold is merely retracing on the jobs news. It has much further to run.