Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Rallies to Resistance...and Backs Off
August 10, 2020 - (Gold Market Wire) - Gold made a run at resistance and backed off to re-group. The hourly chart tells the story, and it's a technical one.
Our technical picture has been confirmed in the short-term now, and the target is clear, for those who have a short-term trading outlook.
Still, the good news for the Gold Bulls is that their ever stronger little brother - Silver - is having another positive day, and that is a solid, encouraging picture for those in favour of the yellow metal. As long as Silver keeps moving up, Gold will gather encouragement and make another run at the above resistance line. The challenge for the cheaper metal, right now, is at $29.11, which is what we need to clear to make another run at $30.
And the daily chart shows our near vertical power up-trend line, which never holds more than a few sessions when it gets that steep. We've gone up to check in with it - just nearly touching it - but even for Silver, it's asking a lot to keep an ascent like that going.
So far so good. It will be no real surprise to see a move towards the trend line. Given all that we've accomplished in Silver, a retracement to re-energize the market could be just the ticket to further gains, and could be a first level for speculators to add length.