Gold Market Wire
News, analysis and commentary for gold traders and investors
The Technical Take
Gold Backs and Fills
March 9, 2020 (Gold Market Wire) - A good initial opening for the Gold market today. A move higher, then a back and fill which held Friday's lows easily. Not too hot, not too cold. Backing and filling makes for a sustainable rally, so, a solid sign that this rally has some legs.
Doesn't really look like a flash in the pan/vertical move, a parabolic blow-off or a rally that fades into a fizzle. It has the hallmark of a rally settling down to gather strength and move higher. We still have some resistance to clear at $1700 and $1740-50, but the market looks in good shape. $1646 - the wall that stalled us - looks like its fading in the rear-view mirror. It's been cleared nicely now.
It's hard to see, short of a massive and abrupt sounding of the 'all-clear', how gold is going to move lower. The Central Banks must be working full-time on messaging their latest reason to provide yet more liquidity into a market where banks won't lend to each other, people are so scared they're afraid to spend a penny and the velocity of money is grinding to a halt so quickly they'll have to start handing out $100 of the street corner, with a 'use or lose' expiry date.
And in that deflationary environment - gold holds steady.
Not bad in a world seemingly gone mad.