Gold Market Wire
News, analysis and commentary for gold traders and investors
The Technical Take
Gold Touches Support
March 10, 2020 - (Gold Market Wire) - Gold has touched down on support just below $1650, as global markets start to recover from the panic around CoronaVirus.
Gold needs to hold this line to prevent a further sell-off. The market moved up well over the past week, but the lurch over $1700 was short lived. The market needs to consolidate now and move higher to prevent a return to $1635, where important support rests - or the lower perimeter of $1585.
We're shaping up for an important day in the Gold market today. The short-term is our main concern. Intermediate and longer term the market is in a solid position. Right now the main detraction in the market is that, seemingly, ever major investment bank in the world is saying what a great investment gold is at this time. They have something of a less than stellar record in regards to market timing. Everyone in the investment community is convinced (still) that Gold and equities should move in opposition. We're not so sure. The past year says much the opposite.
Today short-term bulls can buy on dips and see if we can clear $1700 firmly, or job the market between $1650 and $1675. But the hard fact is that we need support to hold. If short-term length sees a close below $1635 today they should be prepared to stop themselves out.
Trading is about discipline. Not swinging for the fences.