Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Hits Target and Reverses
April 15, 2020 - (Gold Market Wire) - The market unfolded on plan. We got the downdraft that allowed us to get long, as per our early morning advisory yesterday, and we equally noted the wall at $1750 that had to be respected. That was the sign to either lighten up or get out. At the end we hit $1748 and a few pennies change - - and that is about as close to a bullseye as you get in this game. Pullback/Target/Trade Out.
Now Gold is moving to its next stage: either sit back and charge again, or put in a short term top and sell off, while we await clarity and a better entry point. The chart formation isn't one which encourages any new positions. The run to $1748 was a classic frothy top. A lot of sparkling champagne, and no real strength, and to be frank, we don't like it.
Right now we have to back away from the market. Could it shoot straight back up? Yes, it could. But the set up is not right. If anything, we should be looking at the pullback to $1685-90 as a possible entry point - but even that isn't that great. Perhaps it is time to consider a weekly close below $1690, and what that could mean as a set-up for a short position.
Gold looks toppy and the flourish to $1748 was like a small firework - nice to see, but of no real lasting value.
It's time to be patient and await the next opportunity.