Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Boxed in A Tight Range...Waiting for Next Move
July 17, 2020 - (Gold Market Wire) - Gold is still boxed in its tight range between $1794-$1816 this European a.m. as it looks for a new direction. Volume is uninteresting and the market is losing volatility. Option premium sellers who were brave enough to short the $1800 strike are in clover.
If nothing else, the bulls may take away from the past seven sessions the simple fact that we did not have a big parabolic move, which almost certainly would have then come crashing down and would take weeks to work off the chart damage.
It's important to never trade through boredom - i.e. - don't go "seeking action", which never really works. But we should also realise that the markets are now likely to be subdued from all that this momentous year has brought to them. As such, we could remain within tight parameters for some time. That will give us the scope to 'job'/scalp the market in time. Within the Metals complex, there is a more attention turning to Silver as of late, simply because it is where the excitement seems to lie. When markets become dull, the action seekers go where the vol. is. That is not something we wish to chase, and today's sell off in Silver shows, aptly, what happens to those who do decide to chase markets, i.e., they get a beat down.
Gold is adjusting to its new level, above and below $1800, confirming our earlier prognosis that the round number was of little technical value and only some minor psychological value. Our previous uptrend line is invalidated by the Box, as was our short-lived down trend (July 9-14). Our channel markers still have some validity, but show a market near its channel top, which should give us some pause about scalping from the long side. Indeed, with Silver's big bullshot recently, we can rightfully be concerned, as we mentioned in our Monthly Report (sign-up on Home Page) that our next move could be a slow drift lower. The chart contributes to the potential of that: