Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Stretches Out on Banking Problems
March 13, 2023 - (Gold Market Wire) - If ever you needed proof that Gold reacts when there is a banking crisis - you just had a picture of it. Silicon Valley Bank's, (the tech sector bank) bankruptcy and ongoing rescue has caused Gold to jump. The fear of contagion is now added to war, to create a market place of fear which should cause Gold to thrive. Make no doubt, many (including us) see this as the beginning of "the problems" - and not the resolution.
This time around, it would seem that a simple "bail-out" isn't going to work. The dash for tangible assets, like Gold, is going to get serious. Trading opportunity is back. Yes, in a rising interest rate environment, Gold is preparing to move higher. If that certainly sounds like defiance to the traditionalists. So be it.
Above is our channel. When we take in the full picture we see simply that the market had gotten ahead of itself. The upper channel boundary should be the place to take some length off for a profit.
Core positions to be increased and held. Given the development of multi-regional war, we may be some time, before the bull market ends.