Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Stretches Out and Rests above the Break Out
June 23, 2020 - (Gold Market Wire) - No explosive up moves, shooting stars or other variety of top out moves. This morning Gold is merely backing and filling and stretching out a bit to the upside - getting comfortable with its new neighborhood.
Can it hold? Well, on the positive side, this is the behavior of a market that is not hysterically whipping around. The long, two month, consolidation prior to the up move is certainly encouraging. Equally, the recent dollar strength affirms that the inverse correlation is dying a slow death. Investment demand, the real fuel for Gold, is very solid. (See last week's report on ETF inflows https://www.goldmarketwire.com/articles/investment-demand-and-aum-for-gold-etfs-both-hit-a-record-in-may) Inflows are strong and growing, with record numbers posted across the board.
We are still yet to exceed the intra-day high of May 18 at $1765.38, but Monday's challenge came within $2 per/.oz of the "brass ring". To hold the rally, Gold will need time to settle in. The lack of a parabolic move will hopefully last, as they mostly only end in flame-outs. All in all, a decent start to a leg up in Gold which should be extended through the week. As we advised yesterday, length established on Friday doesn't really qualify as chasing strength" and so we are comfortable with it.