Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Hits Horizontal Support
June 5, 2020 - (Gold Market Wire) - After stagnating for most of the day, Gold has taken the plunge and touched down on the horizontal support line at $1683. As we mentioned in our early report, this European a.m., this line has been with us for some forty sessions. Also of importance is the fact that the 50-day Moving Average at $1697 has given way. We've been above it since the early days of April. The two events, taken together make for a heady mix.
We also noted this a.m., that the repeated failure to get across $1748 was indicating that a lower market was probably the more likely outcome. Indeed it has turned out this way. Now we have the weekly close to look forward to today and Gold truly needs to hold onto the horizontal support. A weekly closing under is going to indicate more pressure as next week starts. One senses a flow of speculative money into stock markets, as incredible as that may seem... and Gold may be taking this chance to sell off as capital gets removed. It's still a tiny market, and if a few funds pull out, a lot of price action can happen. Silver's topping out hasn't helped, as it was the poster child of this rally. No more. Silver is off 2% on the day, and the rally has stalled out.
We stay on the sidelines for now, awaiting the close.