Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Heading for the Showdown
September 15, 2020 - (Gold Market Wire) - Gold has held the uptrend and the 50-day Moving Average and cleared the first horizontal resistance line around $1956, which was the top end of the box we described yesterday. So far, so good.
It's tough to draw any big conclusions from the recent action. The market's lower lows put it in a bear posture, but the 50-day Moving Average holding is a good short-term sign. The recapture of the trend line is also positive. The market blows hot and cold and looks for direction. Without any technical acumen behind it, one could build the picture that the market "should" be going lower, but isn't. Of course, the equity markets' recent recovery are holding Gold up, but one wonders if that can be sustained. Until that issue resolves itself, getting a handle on the market is difficult, and only a madman would try and sell volatility in these conditions. A nice, heafty sell-off would have left us in a solid position to build length for what we are sure is the next up move, but the way the market hangs around isn't really good for its overall healthy. A strong sell off which traps everyone offside and forces liquidation would be better. We may have to endure several months of this until the end of the electoral 'process' in the USA. Who knows how long that will actually be.
And so we await the outcome of the showdown in front of us. Patience remains the order of the day