Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Falls through Trend Line
March 12, 2020 - (Gold Market Wire) - You can say 'better than equities, at least' - but that wouldn't be saying very much today. A veritable once in a longtime (we hope) market rout, of significant dimensions in equities. Global stock markets today are down between 9% and 10% - having already taken a severe beating in recent sessions. The damage is real. A lot of wealth has evaporated over the past month.
For Gold, a little less momentous, but still significant. Along with a 5% fall in prices, there's been some fairly bad chart damage as well.
In a longer time frame:
In exactly one month, we've lost a third in the value of the major Stock Markets. What's more, the measures taken to control Corona Virus could impede an quick economic come back.
In the world of Gold, a lot is in the hands of the public. If they join the market very little can stop it. Volume was strong over the past month. That's a good sign. Participation and rallies tend to go together. But today's chart damage is potentially significant. The 50% retracement has been touched and traded through.
But Gold is still resilient. As the banks get weaker and weaker, as they are everywhere, and especially in Europe, Gold's retail demand could start to move prices. It remains to be seen what 'special' plans Europe has to deal with a serious insolvency. They have forsworn Bail-outs in favor of Bail-ins, but if its the latter, confidence will be shattered. So accounts might be insured to a fixed amount? What about larger deposits? Corporate loans, credit facilities?
The monetary world is approaching a unique point of disorder.