Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Breaks above Horizontal Resistance
June 22, 2020 - (Gold Market Wire) Gold has finally made a break above the persistent horizontal resistance level at $1748 that has kept the Gold price in check since mid-April. It is a significant development and looks likely to herald, in earnest, the June rally we have been looking for over the past two months, at the very least. It could also be the start of the next leg up in the long-term bull market for Gold, although that will take a further move up, and a monthly close for confirmation.
Right now, we need to look for the close today above $1748 ($1747.51 to be exact), but the market is in a good position this European a.m., to achieve that.
Now that our previous high close of $1747.51, on May 20, could be in the past, we note that prior to that we would have to go all the way back to the fourth quarter of 2012 to find a close that was higher. We should also focus on the challenge presented by the May 18 intraday high of $1765.38, as an intermediate goal. Gold is pushing up near truly historic prices, and a run toward the all-time high at $1921 seems a distinct possibility now. Having said that, Gold also has a habit of disappointing and forcing people to chase it higher. After such a long consolidation, that will be a temptation, and it is, of course, hard to see the ending of the downtrend as anything other than bullish. The top of our downward channel has been broken.
Above and beyond the mere market price perspective, Gold is being buoyed by the possibility that the United States is now in a situation of serious political deterioration. The positions between the political left and right are hardening and the spectre of the country dissolving into civil war is actually real. It seems tangible. The US Presidential election looks unlikely to resolve anything, and is instead only likely to continue this trend, as neither side looks prepared to accept the victory of the other, or willing to ever concede an electoral loss in an equitable manner. Equally, the chance for the emergence of something like a socialist/marxist revolution in America, unthinkable just a few years ago, is increasing – with all the dislocation that such a political drift entails.
Is it any wonder Gold is rising?