Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Defense Retains the "Wedge"
November 23, 2020 - (Gold Market Wire) - Gold closed above the all-important $1850 level on Friday, keeping the horizontal support in tact. But the downtrend was not breeched and so the persistence of the "wedge" remains. Frustrating stuff for traders, who need to retain patience. The chart paints the picture:
How long can the situation persist? Well, another week isn't beyond the realm of possibility, and resolution to the chart formation may extend into December. That is not to predict it. It is merely to say that it could happen.
With each passing bounce on the $1850 line, the marker gains in importance. Our cut last week is one we're happy with, as this type of market really isn't providing trading opportunities. One way or the other we will get a resolution, but until the market turns its hand, the rest is merely guess work. All of the upside breakouts have been turned away, and so the Gold market participants are becoming demoralized. Low volume re-enforces that idea. And all the while, Bitcoin goes on a tear... up 80% in 3 months. Well, you can chase that at your own peril... the chart is now vertical... but the physical efficacy of Precious Metals, we still believe, will shine through. We can only view Bitcoin as a "lottery ticket" now, i.e. - a place to park less than 1% of your net worth. Yes, the digital world is increasing its role, but it is still an unstable facet of an unstable world. Gold and Silver remain tangible, and that has a value of its own.