Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold's First Challenge
October 1, 2020 - (Gold Market Wire) - Gold's close yesterday was slightly on the bullish side...but only slightly. The first marker set out is the horizontal resistance we have set out in the chart below; coming in at $1906.
So, the 100-day moving avergae has held, and the main trend line (lower of the two above) is in tact. The challenge of the horizontal line now remains a primary hurdle for the re-establishment of the rally. So far, so good.
But as we move to the monthly chart, we can see that the picture is less than encouraging. The picture painted here, in the longer view is one of a market that has a lot of work to do.
In the second (monthly) chart, we see a very different picture - one where the August high looks like a real reach, and a topping move. The $2000 level never held on a monthly basis, and it will have to, if we are going to make the much vaunted journey to $2500 and above. So, the trading position might like small length on the weekly close above hosizontal resistence (first chart), but fireworks can't be expected just yet. That may come closer with the US Presidential election and the chaos that is almost guarenteed to erupt - no matter what happens.