Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Comes under Renewed Pressure
October 15,2020 - (Gold Market Wire) - Godl is coming under pressure again in the European a.m. as the downtrending channel drags the precious metal lower. As we earned yesterday, the channel pressure is strong and until Gold breaks that 'spell' it has little chance of recovery. Right now the support line is under pressure and if it gives way, we are heading back down.
Failure to stay above the trend line in the chart above means that all trading length should be cut...or at least cut by half. (spec shorts and wild-eyed gamblers can prepare to short.) It is a weak sign that every attempt to gain momentum above our horizontal resistance at $1906 has been repelled. The channel and the trend line are opposing forces, and very soon, one of them is going to win. But holding onto the trend line is only a first challenge for Gold. It is the channel which is exerting the pressure. Our failure to break above the downtrend on a closing basis earlier this week was the 'tell'.
So we have more of the same from yesterday, but the immediacy of the situation is building. Gold needs to hold here to prevent another leg down.