Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Consolidates in Mid-Channel
Too often the Gold crowd demands an over-night move to $5,000+. But that is not the way markets work. A real bull market in Gold is built on careful consolidation that powers ahead over time and then explodes upwards when its all coming to an end. Right now we are in a classic consolidation phase, back in the channel, and regaining our foothold after a rather momentous 'slingshot' move. That's all good. That's what we want. "Moonshots" are the final scene of a long 5 act play - and we are not there yet.
The mid-July/mid-August move defined our channel perfectly, and then the slingshot break down and recovery. The fact that we are not at $2,200 is, actually good. It means we have a bull market that is calm, collected and ready to move higher - just what we want to see. That move down was a near mystical occurrence, that almost was a prophesy of the problems that began with October 7. Yes, the markets move in mysterious ways.
Now we are back to a 'normal' slope upwards. Fear not, it won't last. We are merely resting awaiting the next jolt which is sure to come. As we have said so often in the past - this Gold bull market is not going to be something to cheer about. It will, if traded properly, perhaps offer you some protection from what is sure to be a storm of epic and frightening proportions.
Sometimes I truly wonder why Jim Sinclair, and Harry (who was always ahead of the game) picked this year to step off the mortal stage to the next world. When traders like that, who are the Kings of timing, depart - you can't help but wonder, with a wry, affectionate smile, if they haven't timed the market perfectly yet again.