Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Is Gold Starting Its Big Move?
March 11, 2021 - (Gold Market Wire) - In answering yesterday's question of pertinence, i.e. "Was that it?" - when referring to the end of Gold's down move, this morning's action has come back in something of the affirmative. Gold's is looking more and more like it is ready to make a move of significance to the upside. We still have a hurdle to clear, the top of the channel, which we can see on the chart.
Are the sellers exhausted? Has the weak length been expunged? We think so. The "big move" down, i.e. all the way to $1445, doesn't appear in the offing. Amongst the several reasons we could list, are:
1) Potential Mid-East war in Iran.
2) Continued Bond Market Weakness.
3) A Global Agriculture/Food crisis brewing.
4) Inceasingly bellicose exchanges between the USA and China.
But all of these put together do not create an environment for a resurgent confidence that would be necessary to stop Gold from rising. The pullback we have just witnessed was slow and tentative - if protracted. The deteriorating security environment around the world could create the setting for a rising US Dollar and a rising Gold price. Yes, it can happen.
In the more immediate time-frame, the increase in volume on the way down indicates a solid shake out, which was what we really needed to start a rally.
Having said all of that, we re-iterate the investment posture for Gold accumulation,as well as holding our spec long and now adding length for the trading position. Scalping never got off the ground yesterday, because we never got the pullback. That only indicates a market that could be ready to move. If we get a solid move higher, our next order of business will be finding points at which to lighten length.
Let's see if we can get the rally to develop first. We are bullish from the trading posture. Those who like action can start buying Silver.