News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Update

Gold Explodes Higher

November 6, 2020 - (Gold Market Wire) - Gold has moved sharply higher, after leaving the 50-day moving average (a major impediment to recent progress) behind. At the close we sat over 2% higher on the day, and have followed through into the European a.m. Importantly, we have left the $1906-10 resistance band in the dust.

identifying resistance

As we see in the chart, moves surrounding the 50-day moving average tend to be quite violent. A lot of pent up energy is gathered and then released, both on the way down, and now, on the way up. The fact that the point is so formidable is why the follow through is so strong.... when it makes it through and doesn't head-fake.

We can now see Gold's next hurdle, at the resistance, and a Friday close above it will likely lead to a significant rally ahead. Any pullbacks should be bought for the trading book.

No doubt about it, Gold is in a strong rallying position and it is highly likely to be beginning a new phase to take us us to new all-time highs. Length is advised.

(note: It would be simplistic to say that Gold is rising on the back of the increasing potential for a Biden win, but that is too easy. Republican control of the Senate is a powerful tool and will likely keep any Democratic administration in check, awaiting mid-term elections, which will likely be disasterous for the Democrats. What we are witnessing is the beginning of a long awaited monetary crisis and its concomittant "reset". This has been brought about by a banking failure (2008-09) that was never resolved into bankruptcy and the failure of Central Banks to move away from 0% interest rates in an attempt to paper over that failure, instead of accepting it. The clock has run out on the waiting period known as 'extend and pretend', and the expansion of government debt is now so collosal it can only end the way von Mises always said it would: "a failure of the currency system". That is where we are now. That 'failure' and its recast is no longer conjecture about the future. it is here and now. Prepare.)

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