Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold's Power Uptrend
June 29, 2020 - (Gold Market Wire) - The power uptrend is taking shape now, as Gold performs a small back and fill in the European a.m. The end of the month, quarter and yearly half way point all converge tomorrow, and it is going to be a close of real significance. From a technical standpoint, only the yearly finish carries more weight for investors and "trend seekers". Right now the picture is of a market in good health.
The pullback this morning is just adding to the positive feel. We've got a decent power uptrend and no sign of the dreaded parabolic move. The challenge just above $1780 is marked out, but staying in the channel would be even better for long-term health. Of course the power uptrend can't hold forever (save in a blow off topping move) so we should expect it to eventually give way. That doesn't mean bearishness takes over, but instead, that we use that power trend to tell us when to take some length off. Today, if we move up towards $1780, we should take 1/3 off the table and wait.
Big picture, there is little to hamper the Gold rally now. There is no doubt about it - the world is a serious mess, and it's not getting better any time soon. A lot of disasters have been staved off by money printing, government handouts, and deferments of every kind imaginable - but that won't last forever. Soon, all those non-performing small business loans and missed mortgages are going to take a toll on the banking system. Then the real fireworks will start.
The economies of the western world are leveraged and in (extreme) debt and the banking system is probably insolvent. The question we need to ask ourselves as Gold investors is, what will a beleaguered banking system do to the price of Gold. The last time around (2007-11) we moved up some 300%. We wont get ahead of ourselves, but in a current perspective it's hard to see how the marker at $2,000 /.oz doesn't fall before the end of the year.