Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Slowly Builds Respect
August 9, 2022 - (Gold Market Wire) - Gold has been a disappointing place to be for the past 6 months, but the horizon is starting to brighten slightly. The tentative move above the 50-day moving average is a sign that some confidence is returning to the market.
With no regret, we have been seriously under-whelmed by this market, and really threw in the towel months ago to take positions in Crude Oil. We have said as much here - repeatedly. As such, we have sat out the Gold market as of late, and been content with a couple shorts on the way down. Our reticence was well-founded we think. Our reasoning was simple - The world stands on the edge of war, inflation rages...and Gold does little. Six month ago we were nearly $300 /.oz higher. So we retreated to the "coins in the pocket" for insurance only stance and it has worked well.
But is it time for a re-think. Maybe. We still remain cautious. We dodged the bullet at $1680, as noted in our last Gold missive, where we were getting ready to short again, but the technicals saved us from executing. Now we must contemplate length, with a guarded eye.
The weekly target clearly identifies the $1800 area as the point of divergence. We are going to wait and see what the Friday close brings. If we get a solid close over $1800, we will begin by adding some core position. With the international chaos very likely to be merely on hold, as opposed to resolved, it may explain our recent summer doldrums, and why they may soon be coming to an end.