Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold: The Perspective
August 11, 2023 - (Gold Market Wire) - When we look at the immediate picture for Gold, we get the impression of a market that has, once again, failed to make a break-out. $1977, our main pivot point, failed, and down we went. As mentioned earlier - this brought $1900 back into view - and, sure enough, we are just about there.
Storm in a teacup? Tough to tell. The market is highly concerned with the re-emergence of a US Dollar rally, and that is part of the reason for our sell-off. That rally hasn't materialised, but is over hanging the market.
But once we back up and use the weekly chart - we get a very different picture.
The weekly has be an interesting perspective. Here we see a channel of some value - albeit imperfect in mid-2022. The channel trend is up and hasn't; t changed. It indicates general strength. The 'waterfall' of the Daily looks like a blip in comparison.
As we are at the bottom of the channel, we are inclined to trade from the long side. We can either buy small and then scale down at $1870 for a larger position, or we can buy in moderate size and cut of the uptrend fails.
Either way, we are getting the length on, here....sized to survive a downdraft to the $1850-70 region for the second purchase and $1810 for the main buy. Wile-eyed gamblers can buy here and play the hoped for bounce, getting ready to cut if New York closes under our weekly uptrend/channel bottom.