Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Runs Hi/Lo Right on the Trend Lines
January 29, 2021 - (Gold Market Wire) - Gold has touched both of our chart parameters in European trade, defining the hi/lo so far today. The trend lines we paid out earlier this week have worked well...and as we are always wont to re-iterate; those who say technicals don't help you in the market are wrong and without compass. The chart below speak clearly.
As we said yesterday, US Dollar strength was slowing Gold's progress, but wasn't causing it to sell off. We noted that given the Dollar's strength, we were actually impressed with the way Gold has held, and we continue to be. Few outside of this site are willing to countenance it, but we a rising Dollar may no longer be an impediment to Gold's progress....or at least, may not be the cause of a violent Gold sell-off.
Everyday is unique in the market, but trends are always in motion, whether in continuance or in reversal, break out or break down. It's true that Gold's is indecisive. It is still worried about a Dollar rally. But it is gaining courage that a stronger Dollar may not inflict real damage. The articles we have penned in the past month have laid out the historical basis for such a move, and recent action gives support to our increasingly held position that the "inverse monetary proxy" theory of Gold and the Dollar may be waning. Along with the chart work, there are simply too many people espousing this correlation....and too many people talking their book, and howling about the imminent death of the Dollar.