Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Pulls Back to Test Trend Line
July 9, 2020 - (Gold Market Wire) - Gold has pulled back to check in with the primary uptrend line, which just happens to coincide with our old overhead resistance - now refashioned to become support. It's a solid development for Gold, which is now settling into its new 'atmosphere' above $1800.
The pullback is an encouraging sign for Gold's sustainability, once again, avoiding the parabolic move and backing and filling nicely. The trend line in the above chart is still our big indicator and, for now, its where the market should pivot. From the trading perspective the move back to $1800 could allow some small length to be re-established, but we'd hold off on the heavy guns to see if we get a move towards horizontal support back down at our breakout point of $1748, which would be a real testing ground.
As we advised earlier today, the key was not chasing the market up with length and following the cry of "this is it!" by piling on margined length. That is why the pullback to the lines should only command small additions to any length. Friday's close awaits, and that will add some confirmation as to what our next trading move should be and how it will be defined.