Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Settles into Fledgling Recovery
November 11, 2020 - (Gold Market Wire) - Gold has settled down after the big sell-off Monday, and is making a small, fledgling recovery. It's not a lot to cheer about, but the spectre of the "dead cat bounce" has at least been partially forestalled.
On the plus side, a long-term trend line going back to June has been re-established and is re-forming, but only for a day or so. More importantly, $1850 didn't give way and it is now this level that the whole market will be focused on - so if it gives, it's probably a 'look out below' scenario. A true line in the sand.
For the aggressive trader, this is a place to buy, against a possible failure at $1850.
Overall, what we have seen, again, is that when the money gets pulled from Gold's tiny little world to seek fame and fortune in stocks, positions get liquidated - quickly. No change there, the traded Gold market is small...so it is volatile. Ditto Silver x 3.
Although we are usually prone to avoid talk of fundamentals within the Gold arena, sometimes, the "big picture" fundamentals really do count. Things like debt, both private and government (especially), things like a multi-generational end to monetarism as a method for understand inflation, currencies and (again) debt. And , of course, we always return to that most important dimension: confidence, which is so sorely lack at the moment it appears to be behind lacking in every corner of the world. That simple fundamental may be the most important facet of the Gold market going forward, as political systems start to crumble, and the emergent new ones fill populations with trepidation.