Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Inches Along the Uptrend
December 9, 2021 - (Gold Market Wire) - Gold continues to track our main uptrend, without getting above, while the developing power uptrend is holding. All in all, although the market remains quiet, the indications are positive for a move higher.
Yesterday we pointed out the challenge of the moving averages, and we did get above the 100-day, but failed to hold and closed below it. A first touche', perhaps. We also see, in the chart below, that the encroaching resistance level is heading for a showdown. Here's how it all shapes up:
We call this a positive picture, if in embryonic form. The power uptrend, whose base node is Dec.2, is creating energy to take us through the moving averages. Yesterday's thrust was, likely, a first probe higher.
Here's the zoom out to take in the bigger picture:
As we head into Dec. 15, we can see the showdown developing. The US Dollar rally has been large, but Gold is holding tough. That could encourage our trading from length.
Yesterday, the "nimble and nervous" were able to take the move through the 100-day yesterday to trade out of length from the trend line (c.1785) towards the high of 1793.00. That's almost a scalp, unless you really leveraged the trade, but one could hardly deny that the market doesn't seem to offer a lot in the way of money making opportunities presently - and one must take what they can get. So here we are. Let's see if the power uptrend can hold. We remain bullish in the current environment.
The disastrous UK political situation surrounding a 2020 Christmas party at Number 10 Downing Street, which openly flouted Covid restrictions that the Johnson government was imposing on the populace has dealt a death blow to the trust in Government. That is fuel for Gold, right now... and by extension a death shot to the British Pound, where we remain short vs. the US Dollar. Next year we are looking for a true rout in GBP, and the recent political disaster, which has some 60%+ of the British population calling for Johnson to resign his Premiership, will be, perhaps, the spark that sets it off.