News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
Gold Market Wire....News Analysis and Commentary for Gold Traders and Investors...Gold Market Wire
Gold Market Wire....News Analysis and Commentary for Gold Traders and Investors...Gold Market Wire
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Opening

Gold Starts the Week...Weak

May 25, 2020 - (Gold Market Wire) - Gold is starting the week with little to cheer about. Friday's action gave scant encouragement to the bulls and Silver's inability to follow through tagged the Precious Metals market as weak. Not much has changed this morning.

...not an encouraging sign

The Longer term chart, going back to the "March Madness" low is no more encouraging.

trendline failure. gold needs to get back above the line

Gold needs to get a move on and it needs to do so soon. Unless a positive tempo can be re-established, the market is heading lower.

With continued economic chaos riling the world, and China's increasingly threatening tone towards protests in Hong Kong, one would expect Gold to react. The fact that it does not reveals a market that can't follow through to the upside. And what can't go up will eventually come down.

Gold Investors need to take note of the weekly chart and the challenge it presents.

the weekly view reveals the challenge just above $1750

In addition to Gold, Silver is also faltering, as Thursday's drop reveals a market that has failed to follow through. Silver was the where the real action has been for the past two months, and was seen by many as the engine of the precious metals complex. That engine is now idling and drifting lower.

...primed for a downdraft?

So the weak begins on a downbeat. No problem. Markets are meant to be traded not adored. On Friday we warned, "Those who are more inclined to book profits and trade out should probably do so. The chart is not encouraging. ... If we get a rally up spec traders may want to pick a place to flatten a bit or cut completely" We see no reason to alter that this morning. Get flat and wait. Wild-eyed gamblers can think of getting a small spec short on.

Silver has run some 50% from its March lows. Those type of movements have to be respected. The tree shakers are sensing an opportunity. When they do, it's best to get out of the tree.

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