Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Charges Through First Major Resistance at $1837
December 3, 2020 - (Gold Market Wire) - Gold is putting in a very sharp performance, with a quick recovery up to initial resistance at $1837, and, briefly, above. There is no magic in the number, it's just an important technical level...on the horizontal line.
First order of business is the Friday close above $1837. Then we move on to tackle the breakdown point of $1850, and its continuation band up to about $1865. If we get solid closes above those levels (weekly or monthly), we could be at the staging ground of a very significant rally. Slingshots like this can be powerful.
The breakdown of Gold last week looked like a significant event that was going to take the market lower. In such cases, it is imperative for the market to recover quickly for the bullish tenor to continue. Otherwise a protracted move lower, with a time consuming recovery, can can become embedded. That makes Gold's recent performance all the more compelling and positive to upside price action. Make no mistake: this is manic stuff. The swings and reversals, and their ability to conjure multiple scenarios make for choppy action after a multi-month drift lower. In such situations the best bet is to set out your markers and then be prepared to cut quickly if it goes against you, and also be ready to re-establish when the sky looks like it's clearing. We just lived through such a period of vacillation. A potential break out, that reversed and broke the trend and then waterfalled down - only to recover sharply.... all in the course of a few days.
Expect more of the same.