Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Pulls Back after Friday Moon Shot
October 16, 2023 - (Gold Market Wire) - Friday was one for the record books, no doubt. The spectre of a full-scale mid-east war caused the market to surge. Now, we have the Monday journey to some semblance of reality.
The market behave technically well, as the chart shows. It stopped at a likely place, and we are retracting back.
How long will the retracement last? Well, our first challenge will be at $1900, and it will probably come fairly soon. As the chart shows, our downtrending channel is still with us. That reveals the market's concern with US Dollar strength. But we should note that Friday gave us a fantastic snap shot of what a real white knuckle crisis looks like - namely; strong US Dollar and strong Gold. It was a revealing day at the market!
We'll take some heat off the trading side of the position, because it is deep in the money. Respect for the discipline becomes paramount in these types of markets. Some of the position is $100 up in a little over a week, and needs to be realised. The siege of Gaza is ongoing and the next geo-political move will likely be in Lebanon. There are reports that Iran is moving forces towards the Iraq border, which would present a real challenge to western authority in the Middle East, should they invade. Oil is pulling back slightly, but remains on edge. All eyes are on Tehran.