Gold Market Wire
News, analysis and commentary for gold traders and investors
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Gold Market Grinds to a Halt
June 5, 2020 - (Gold Market Wire) - The Gold market is grinding to a halt, giving those brave enough to sell volatility a profitable stance. Last week we looked like we were on the brink of a break-out to new highs and getting ready to challenge the all-time $1923 peak. Now, not so much. Those vol. traders with the nerve to sell the $1700 Gold strike continue to be the winners, with each passing hour. Through all the noise, a simple truth remains: a whopping 40 trading sessions with every opening and closing between $1683 and $1748. That's it. A $65 dollar range. The chart paints the picture:
Right now we have the 50-day Moving Average (in blue) and a small uptrend line to consider, which can be seen in the chart. It's holding, but is it building to something bigger? Probably not. The market is lack lustre. Scalpers can try their hand on a pullback, but we are now even more inclined to sell rallies on moves up, for a small, short spec. The action of Tuesday and Wednesday have an air of resignation to them, in the short-term. How many times can we try and close above $1748 and fail, before the market simply gives in and drifts lower? That is the real question.
The harsh reality for the bulls is that multiple attempts at break-out haven't worked. That means the strategy for length going forward must mean a weekly, if not monthly close above $1750 to look for a place to establish length. Until then, we're jobbing on rallies, if we get them. Gold is a quiet place right now, and is set to drift lower, or just remain in this limited range.