Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Opening
Gold and Silver Showdown Shaping Up
May 28, 2020 - (Gold Market Wire) - Silver's showdown is getting ready for the limelight as the downtrend is under attack. To add to the bullish argument that might be developing, yesterday's action looks like a flushing out of the bears: a sharp move down, followed by recovery in to positive territory. The bulls could be ready to recapture the market, if the targets are met.
Gold is also in the cross hairs, this European a.m. as the horizontal resistance point and the downtrend line meet for today's set up
The long term trend line has been recovered after yesterday's flushing, as we see below. This is the same kind of action we find in Silver, but is even more pronounced. The down trend still needs to be vaulted, but its hard not to see yesterday's action as one that cleared out the short positions. The down move wasn't sustained in any serious manner, and now we are trading higher. We need to practice some patience for the downtrend to be breached and perhaps even assess the all-important monthly close tomorrow, but right now the chart is almost painting the bullish picture we need to establish length.
We're not there yet, but a daily close above $1728 in Gold could set things alight for a big rally on Friday. The weekly close is going to be critical. As we have stated previously, we were looking for a pullback in May with a rally coming in June. It could be that we have seen all that the pullback has to offer.
Right now there is a slight tail wind at the Metals' back coming from events in Hong Kong. The seeming stand off has all the hallmarks of crackdown from Beijing coming soon, and if it happens, or the tension doesn't subside (unlikely), the precious metals world will be lifted. In the USA, Los Angeles is being looted and protesters in Minneapolis are squaring off with police. Both incidents are occurring over the death of George Floyd, who died when (Minneapolis) police restrained him during arrest. The video footage is damning and four police officers have been fired from their jobs over the death. Floyd was unarmed at the time of his death.
As disconcerting as the events are, Gold and Silver can react to events like these, because precious metals can act as social bell weathers. That is what makes them unique in the commodities world.