June 25, 2020 - (Gold Market Wire) - Gold continues to consolidate after the latest gap up above $1748, and looks to be settling into a new trend. Although early in formation, there are a few parameters which are taking shape, allowing us to frame the market in the short-term.

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We are especially comfortable with the top end of the channel in the above chart, which is now starting to develop some consistent touch points. The lower end, we are less sure about. But we do have the developing uptrend to give guidance - as seen, here:

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This puts us in a tight pattern, which is a good way for the recent action to consolidate. The run-away upside suits few except the adept day trader who is very good at pulling the trigger. It should be noted that some of those day traders, and 'spec' traders, are now gearing up to short the stock market... as we speak. Many people have faded this (equity) rally seriously and believe that the recent recovery action is getting way ahead of itself. It would be hard to disagree with such sentiments, and if we get another wash-out in equities, we will have to be nimble and set up some markers in Gold to either lighten up or move 100% to cash and get out of the way. Strange as it may seem to the uninitiated, Gold has been the one instrument that has remained placidly calm throughout all of the recent volatility. That means its performing its safe-haven role, which is encouraging.