Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold and Silver Market
Metals Continue Their Churn
April 30, 2021 - (Gold Markt Wire) - Gold and Silver continue to trade in a short range, with no clear trend emerging. Until we get out of the churn we're in, the only ones making money are the premium sellers. Volatility is being compressed, and all of those upside call spread buyers should use any small rallies to exit the market. The damage that Theta (time decay) and Vega (volatility vs. premium change, now in compression) are metting out are getting severe. Waiting for a real movement is a fools errand for anyone presently.
We take note of the emergence of a downtrending channel for Silver, and traders should be aware of its development. We have bounced off the 'roof' a few times already.
On the other side, i.e. - the sign of positivity, we have managed to hold off a real plunge below the moving averages. That is some consolation for the bulls.
So, conflicting signals - which is what market chop is all about. As we noted on Tuesday, this was a market to avoid, and its anticipation was why we closed out the last of our length and hit the sidelines. We are somewhere between a small downtrend and no-man's land...i.e. - really nowhere. Awaiting a development. We must also take note that the recent move lower in the US Dollar has not produced a huge rally in Gold and Silver. The market overall is being hamstrung by the continued impression, right or wrong, that the stock market is preparing to sell off. That will put a brake on any rally in the metals, until the sell-off commences - or the market mentality believes the risk has passed.