July 15, 2020 - (Gold Market Wire) - Gold continues to chop around looking for direction, making positioning a difficult task indeed. Recent action has featured what really appears to be fake-out moves to both upside and the downside, with little direction or volume behind them. Its a tough market to get a handle on - and not even scalping can be considered in such an environment. Still, we have a channel that continues to shape the market, even if it is thin, and we should respect that.

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Is that old rising resistance (in blue) carving out a new floor? That is the question. And right now it doesn't have a firm answer. But time above that old resistance will certainly encourage a bullish posture. Patience, yet, is still called for.

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Despite the chop in the market, we can still see that our channel, though it continues to develop it upper band, has been around a fairly long time, save for the March Madness, and that must be given its credence.

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In the larger picture, we are some four months away from a US Presidential election that looks to be contentious beyond belief, and whose outcome will do little to quell the internal problems America is beset by. That, of course, will favour the bulls in Gold.

Finally, this a.m., we must draw attention to the state of the US Dollar, which must be considered as a factor on Gold's ability to get above recent resistance. As the only real currency that's worth chart against vis-a-vis Gold, the Euro/US Dollar rate has an interesting formation that will be supportive to a bullish Gold outlook.

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The correlation between Gold and the Dollar is one that comes and goes, so it is difficult to draw a big conclusions from it. Some market analysts put the correlation at 90%, which might sound like a lot, but in market terms doesn't hold a lot of water. It's just not an indicator you can really trade on. The downwardEuro/USD trajectory since the start of 2018 hasn't done much to temper Gold's advance... quite the opposite, in fact. Such are the dictates of a true monetary crisis in the making.