Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Closes in on Horizontal Support.
May 7, 2020 - (Gold Market Wire) - Gold has sold off towards the horizontal support line around $1682, and will have to work to get above the downtrending line above which is the first hurdle to restart any rally.
Our first small spec around $1680 gave us the chance to establish a little length and the ride up last night provided an opportunity to rest a profit-taking sale. The stop out line is still around $1673. We'll have to be nimble in a market like the, but the same trade could be tried again for the wild-eyes gambling type (as Harry Schultz used to call them).
The market will have to resolve itself before long and for those with a longer outlook than a few hours, establishing length (again) around $1680 can be used as a small, first entry point. We still think Gold is carving out a bottom in May, from which we can rally into June. But the possibility for a decent shake out of weak length is always present in the Gold market. There is nothing COT and the 'gang' like better than to "tree-shake" weak-length out of the market. So if you establish length here, size it right (!). If we get a further sell off you can add to the position in greater size when we get the down draft.