Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Hits the Bottom of the Channel
August 26, 2020 -(gold Market Wire) - Gold has hit the bottom of its recent channel markings, and the question on everyone's mind is 'will the buyers come in'? The first thing to consider, in this regard, is that this is a fairly low volume sell-off, at a notoriously illiquid time of year, so the market won't be as robust as usual. That means a spec long could be worthwhile - but establishing a position should be held to small size.
From the all-time high at $2075, we've traveled down to almost $1900 - a not insignificant move. That makes a spec worthwhile. It is interesting to note that Silver hasn't seen fit to come off as hard. That may be a real indication of the shape of things to come. I.e. - a further contraction of the Gold/Silver ratio. But as far as the trade itself goes = lets remember that this low volume environment isn't the best from which to draw any conclusions of significance.