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 Frustrated at Horizontal Resistance

May 4, 2021 - (Gold Market Wire) - Trading Gold is a difficult, frustrating task most of the time, and not letting it get to you can be a supreme challenge. Once again, right when we had the ball on the tee and we're primed to hit a clean shot - the market throws up another conundrum. This time it's the appearance of what looks like a reversal developing, after another set back brought about by the failure to get over horizontal resistance.

...foiled at the resistance line.

This time, the appearance of the 100-day moving average lined up perfectly with the horizontal resistance. In the past ten sessions we've been repelled here four times. It is a frustrating marker to say the least.

Silver's performance has been exactly what one would expect - an amplified version of Gold:

...are we about to fall back into the resistance line we just cleared?

Adding to the general frustration is that the agricultural complex continues to go from strength to strength. (*We advised length in these instruments months ago, and continue to hold long-term core positions in them.) But the metals just keep failing to take off. It's difficult to stay positive, but we remain so. Inflation, despite what many say, actually is making a comeback, and the agri- complex is proof of it. That will leak through to the metals before long as people see the price pressure of staples start to erode living standards. Trading agriculture just isn;t easy for the public - but buying Gold and, especially Silver, is. When people start to really feel the pressure of commodity prices as a new, fundamental reality, the move will be into metals to protect themselves against consumer inflation. We aren;t there today, but GMW believes we are not far away from lift-off.

We remain vulnerable to a serious stock market correction, and it looks like we are just about to get one. That is one of the main reasons why we stalled out in the metals. But the indication should be clear: When we;ve finished with the equity sell-off, be it a correction or a crash, and whether it turns into a bear market or yet another surge to ever-ridiculous valuations...Gold and Silver will be trading substantially higher.

Our eyes are on gauging the equity sell-off to see where it abates. The we will be adding length to both the trading and the investment book. Gold and Silver's heyday is now coming into view, as the panic over what is setting up to be a Commodity market rally of monumental proportions begins to grip the public. Finger on the trigger, getting ready to execute, when the sell-off in equities abates. That is the correct strategy.

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