Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Is Gold Getting Ready to Tumble?
September 18, 2020 - (Gold Market Wire) - Gold is failing to rally, the lower lows are still in effect and Friday is with us. The market either gets a move on today, or we must prepare for lower prices. Our small, meagre uptrend of the past week has had no follow through and that looks like the market is running out of energy. The downtrend continues to hold, the uptrend continues to be challenged. The 5-Day Moving Average is about to get challenged again and, generally speaking, the market looks weak, like there is no one around to buy it.
It's hardly an encouraging picture at the moment. While it must be conceded that we are in the top of our $1927-$56 box, set out by the horizontal parameters, the market is failing on multiple fronts: from the Moving Ave, to a trend line that is barely holding - now some 11 sessions where we can't seem to get off the mat.
This is no place for length in our opinion. The energy is running away from the market. Spec traders can try a small short, if the opening doesn't produce a recovery. The market looks like it doesn't need length to go home with over the weekend. The NASDAQ lost 1.27% yesterday and that is overhanging the small by comparison, Gold market. Right now, the bookmakers have Trump and Biden about even, but those with a good track record in political prediction have Trumpt in front. If re-elected and actually capable of remaining in the White House, the tech world could be headed for a monopoly break-up. That's got the NASDAQ concerned, and the chance for a fall that takes tech-stocks and Gold with it seem ready to increase in a world which should see a Tump edge keeping the market firmer. Instead, it is now delicately and finely poised between two apparently contradictory outcomes.
After such a quiet period, could we be getting ready for volatility? Or will Gold suffer a continued 'death by a thousand cuts?'