Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Goes on the Counter-Attack
November 13, 2020 - (Gold Market Wire) - Friday the 13th and unlucky for some, but so far not Gold, as the metal fends off the breakdown level of $1850 and makes a charge higher into the Friday opening. It's a good start to wearing off the chart damage done by the "vax" crash, which, as all news related items always are, reversed fairly quickly. The defense of $1850 gets its importance from breaking the chain of lower lows, and staging the ground for a potential reversal. Its that simple, really. Also, as if it needed to be re-iterated, chasing news at this time, short of "Ayers Rock Found to be Full of Solid Gold", really has no utility - and should bring out the contrarian.
As it stands now, we have a small gap higher and are building a little inside uptrend. As our downtrend shows, we've cleared it, but, the question of course is, can we hold it into the close. To repeat yesterday we see the 50 and 100 day MA's getting ready to cross, which has been a bullish sign before. On the 'inside track' we were going along nicely before the 'news' derailed us, so we are inclined to climb back in on the close (MOC) if the downtrend remains bettered.
One should note, that the tlk of a monetary reset is everywhere these days, and with the kind of "professional" messaging the central banks do, there is probably a reason for that. Will it happen tomorrow? Probably not. But it could be coming faster than most think. And in this respect, the desire to regenerate inflation by scaring the living hell out of savers and forcing money into the economy for fear of losing it will probably gain official traction. Considering the levels of debt and deflation we have had recently, i.e. the past 12 years, the reversal of trend could turn out to be a 'religious experience' in the opposite direction. One would be rash to dismiss the fact that Gold and Silver may emerge as 'underground' currencies, much as they operate in Africa, the UAE, and parts of Asia. But they remain poorly circulated amongst the public in the West. Once that changes - a lot of price action can be expected.