Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Is Gold Getting Ready for another Move Up?
July 13, 2020 - (Gold Market Wire) - Gold is beginning the week in an interesting formation. From one perspective, the upper end of the long-trending channel has been breached, and could be signaling a market getting ready to make another significant move higher. Here we look at a wide picture of the channel going back to the start of the year.
Certainly, the way we keep sitting down on that upper channel line makes us believe we could be leaving the old channel behind.
Here's a zoom in of the above chart:
All in all, a difficult market to assess. But that is usually the case when markets start to get into new territory. That is what we must consider now. In a more 'coherent' market, we would have considered that a pull back towards out $1744-48 break out point would provide the best entry point - and we could have reasonably expected this to happen. Now we begin to question whether that is going to be the case and if we are now ready to simply take out the old high at $1921 and power our way to $2000. With each passing hour, we must admit, that is beginning to look like an increasing possibility. The end of this week and month are going to be very important indicators. If we close the week or (preferably) the month above our channel we will have to prepare for a next leg up - and a strong one at that.
As we are won't to say here, higher Gold prices feed on the decline in public confidence in government, and that is what the western world is starting to truly experience. From American public disorder that now looks ready to break the country apart and turn the US Presidential election into an irrelevancy, to the growing waves of discontent across Europe over the continuing decimation of their economy, public discontent is growing in the western world to very elevated heights. We may now be reaching the next phase of Gold's long-term bull market where public confidence starts to collapse in earnest and Gold starts to rise strongly. If it does, there will be little to cheer in a higher Gold price, other than the protection it may provide.