Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Follows Through to the Upside
July 9, 2020 - (Gold Market Wire) - Gold has maintained it's recent run and is now trading comfortably above the $1800 level. We payed little attention to the round number as its significance was only a minor psychological threshold, but the new atmosphere is, nonetheless, a positive sign for the bulls. The power uptrend charted below, and only in its third day, is almost vertical, so the market needs to calm down to sustain the recent run, unless the new order of play become one of heightened volatility...which is always a possibility.
The clearance of the rising overhead resistance leaves a clear pathway for Gold in the short term. We took a small (20-25%) percent of the trading position off the table to await developments. The follow through has been very strong, so we maintain the balance of length and look for a place to consider a re-establishment of that minor position if we get down towards the main support line - which is now nearly 6 weeks old.
Overall there seems little to dent the enthusiasm for Gold. The global markets are awaiting the tidal wave of non-performing loans, unemployment and business failures that have been kept at bay with government largesse. That will not last forever, and when reality descends, it is likely going to be a very ugly picture to behold. The US political environment becomes more toxic by the day, and that looks unlikely to change anytime soon - especially before the US Presidential election, and probably for well after it. A large portion of the population is practically screaming and ready to fight to create a Marxist revolution in the country, which the Democrats and a decent portion of Republicans seem to support, as they know it will keep them in their offices for a few more years. Few politicians have any interest in participating in the competitive world of business, so incumbency is the career of choice, regardless of the health of the nation. Ditto the EU. It remains interesting how the concept of term limits never gets broached and is far from the mindset of the furious crowd. What is coming down the path of history is a monumental change that will see the west sidelined as the world's major economic force. It is of little matter to the non-western world, who stands ready, willing and able to take the mantle off them, which they will almost certainly do within the next decade. That shift in the economic fulcrum of the planet will last for several hundreds of years, as the Western world is eclipsed.