Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Hammered in New York Trade
March 29, 2021 - (Gold Market Wire) - Gold has taken its next leg down after Friday's failure to rise above the downtrend. The market has made a significant gap lower and our recent low at $1676 is coming into view. Gold has a big challenge before it. The long-tail that we thought could produce a rally, as it has in the past, has failed, and our demand to wait for confirmation on Friday before establishing length proved prescient. The chart shows the value of patience, and why trying to 'guess' or 'pick' a bottom is almost always a fool's errand.
It's not yet a full fledged 'blow-out', but Gold is flirting with some fairly serious danger now. Length has to be considered out of the question, except for the clinically insane or those who like their risk served in enormous portions. The chart low has to hold.
Silver has taken the next leg down as well, and stopped where it should, on the horizontal. If it can't hold here, there's a decent shot we get down to $22.
Another rough day for the bulls. The market is going to keep pushing ang pushing, until exasperation sets in and everyone throws in the towel...whereupon we will promptly rally again. When will that be? Who knows, but the market loves to force capitulation, and it will be no different this time. The sidelines have been a good place to be. A move down towards $22 Silver will likely spur some solid buying and at that level even the cautious trader will have to add some core investment.
The commodity complex is resting, but we feel is only doing that. The bull market is likely to resume although it could take a few months. We remain Bullish - but are happy on the sidelines. We await the river of blood in the streets. Then we will think about length.