Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Approaching Major Resistance
April 23, 2020 - (Gold Market Wire) - Gold is surging again this European a.m. and closing in on the main resistance line at $1730.50.
The chart shows the latest gap up.
$1748.19 is the intra-day top we hit a few weeks ago, but the long-term chart shows the importance of getting above the line.
Last time we got up here we "spun out" with a spinning top. Will it be the same, again? It's an enticing formation but remember the maxim: "Never chase strength in Gold." Many people have forgotten such adages to their dismay. Now is the time to remember them. If Gold does stay above, and settles into a new bullish formation, there will be plenty of time to get in length in a proper manner. For now, we remain on the sidelines.
Gold is in a bull market no doubt, and core positions, especially of physical which you hold, should not be relinquished. As for the futures markets, we are minded to see the weekly closings first. A sustainable rally will provide opportunities on pullbacks.