Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Bounce Meets First Test
December 1, 2020 (Gold Market Wire) - Gold has had a decent bounce off of its Fibonacci retracement level and has headed to the target we set out at $1810. The chart formation is quite interesting and now the Gold market finds itself at a first crossroads. The chart:
Now is where is gets interesting. Either a slingshot is developing, which could mean that Gold has put in a low and is getting ready to run towards a new all-time high, or this was just a "back and fill" on the way to lower prices. That is almost a 'red/black' roulette dilemma, and as such we are inclined to give it a miss. Needless to say, if we keep surging higher and get some real footing on the weekly close, we could become a 'believer' again. But time is not on the bullish side. Either Gold follows through in short order, or we are going to head back down again.
The small (and we mean, real small) spec play would be to fade this rally and sell into it. That would give an opportunity to cut the position if it went against us without too much damage. Conversely, for those still hanging onto the last 1/3 of the short, a policy of sit and wait could be in order.
Gold is not out of the woods. Not by any stretch of the imagination.