Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Consolidates Gains
October 12, 2020 -(Gold Market Wire) - Gold is consolidating the gains from its strong Friday rally, as the market gets set to take on the challenge of the 50-day moving average. The 30-minute chart shows the action on Friday and today's consolidation:
So far, so good. The pullback looks like standard consolidation and much as we did in the early Hours of Friday, we see the position of Gold as being bullish. Our first challenge up will be the 50-day moving average as defined in the daily chart - below.
So, the downtrend was cleared nicely on Friday and the follow though was strong. Gold is flexing its muscles. The 50-day will give us the first challange, but there seems little to hold Gold back at this stage. $1850 is now our new floor. We are holding the length established Friday and adding to positions on small pullbacks.
There is little to add, other than that one should hold length with a fairly iron grip now and keep an eye on the trend line. Those who had huge positions on Friday will note that the market ended on a very strong note. Some profit can be taken, if the position was at nose bleed levels - but seasoned pros did a little of that on the close.
It's classic stuff from Gold, and a solid rally looks to be taking shape.
(trading note: did you fade the news on Trump's 'delay of stimulus' talks? The real take-away from the action of the past week or two - include the Trump 'covid-scare' was the lesson of fading news. That provided optimum positioning. It won;t be the last time this happens anytime soon.)