Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Stands at the Precipice
September 1, 2022 - (Gold Market Wire) - Well September has started with a bang. Of that there can be little doubt. The spectre of a dramatic equity market sell-off, i.e. - the "next leg down", is echoing around the world, and fear is taking over. Unsurprisingly, much as we intimated recently, when the equity market stumbles, everything gets thrown out with it. So it is with Gold right now, which is standing on the ledge of what could be a significant move lower.
We wrote, just a few days ago, "Equities are rising in a manner which usually foreshadows something bad about to happen. We are entering the dark period soon, as well. That period in late-August to end-October where nasty things always seem to happen - like 1929 and 1987 and a lot of other sell offs. To everything there is a season 'sell sell sell', could be the new mantra. If we get such a blow out, Gold is going to go with it as well. Nothing (save, maybe, energy) will be spared. "
To be fair, not even energy has been spared, although, in the big scheme of things the recent move lower has been paltry.
Back to Gold:
For Gold bugs, this could be a moment to go on holiday. In short - things could get ugly fast. Of course, once everyone throws in the towel - we will probably start charging higher. We have been out of the market for months, and are relishing the thought of a blow-out to the downside. The move from the recent low of (roughly) $1700 up to $1800 has been unimpressive, - and looks ready to be challenged. Naturally, the grind from the March high has been just slow enough to keep everyone in. False dawn after false dawn.
We find it very unlikely the market can hang on here, to be frank. The charts are telling us that buying points are going to be $1500, $1400 and $1200...give or take a few dollars. Save the 'wood' for the last one if at all possible, and for God's sake, size the trade to weather a volatility storm the likes of which you have probably never seen. And lastly, don't forget; a turn around in the war picture - as in a furthet conflagration like a direct conflagration between NATO and Russia or the US and China (over Taiwan) could lead to some very sharp reversals.... probably at a time when the Western world is fast asleep, and won't have access to all trading platforms. These are just some of the reasons we have no interest in getting short. It would be madness.
So we are heading into what looks like a serious military conflict in several parts of the world and the Gold market... sells off!
It could only be Gold!