Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold: The Bullish Technical Case
December 23, 2022 - (Gold Market Wire) - Gold swooned with the stock market yesterday, but has managed to recover. The bottom of our channel worked like a dream.
For those, who like many, are looking for some kind of Q1, 2023 equity blowout, we may have just had a dress rehearsal yesterday. All the usual cast members were on stage, but the salient one for us was to see that when equities got hit a lot started to get thrown out with the 'bath water'...Gold included. That should induce either caution, or maybe 3-month expiry put options, but if you are sizing a trade, you should be ready to take a decent hit to the downside and be able to hang in. Conversely, one could temper size here and hope the blowout provides a solid downside to buy.
On to the technical side:
We are adding to length here. Of course, the channel has a good history, but we will need to be cautious about year end book squaring etc., although much of that should already be done. Upside potential is outweighing the downside - providing what we think is a good opportunity for an upside move.