Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Sell-Off Follows through into Asian Market
March 30, 2021 - (Gold Market Wire) - No sign of recovery for Gold this morning as yesterday's sell-off has followed through. Gold is now flirting with the $1700 level, and the recent lows at $1686 are beckoning. The chart paints a wary picture for Gold bulls.
There is little to be added to the chart. Eight months of action has seen every single attempt to rally back stifled. The January rally made no higher high, but a double-top instead. So, for all the shrill cries of injustice from the Goldbug crowd - the chart has revealed the harsh reality. Gold remains in a weak position. If we get below $1686 on a weekly close we will have to expect the sell-off to continue. When we pull back on the chart we can see just how the vertical action in July betrayed a top out. Yes, March 2020 did produce the slingshot, but it also led to the extreme eurphoria of July.
So, for those of us (like GMW) who find the calm serenity of the sidelines a nice place to be for these past few weeks, we'll stay right where we are. Hands in pockets and merely watching. Sure, it would have been nice to be short, but as people who are still positive of Gold for the intermediate term, we try and avoid counter-trend trades. But we also don't like to pick bottoms. Gold is being discounted, and part of the reason, it must be flatly admitted, is because Bitcoin has stolen so much thunder from it, the incremental buyer is disappearing. Will that change if Bitcoin tops out? It certainly could. But it's a tall order, nonetheless. Gold will find a bottom and will eventually rally back again. But right now is no time to predict exactly when, because the market is speaking only to the bears. It will likely be some weeks or even months.
Meanwhile, the US Dollar rally - Gold's alleged Kryptonite, continues. In fact, chart developments are warning that another leg up could be in the making.