Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Updat
New York Opening Hits Gold
October 22, 2020 - (Gold Market Wire) - The New York opening has hit Gold hard as the 50-day moving average has repelled the metals' advance. The stock market isn't nose diving and the USDX isn't soaring...Gold is simply meeting resistance.
As we post this, Gold has lurched down to $1905 and come back slightly. Once again, those getting excited by the potential for a break out, this time on yesterday's chart move, have been disappointed. That is why small size was recommended only as spec... while we stressed that a Friday close was going to be necessary to get any real length in. The market is, in turns, lacking in volatility, and then, gaping down, after appearing to be breaking out. Trying times indeed, but that is why, for the trading position, we need to see a decent end of week close, as we opined yesterday. Next week, we should note now, will bring the end of month close on the Friday, so be prepared for more head-fakes along the way.
A tough market to trade indeed, but still one that demands our attention from the long side. The bull has not been vanquished, and demands our respect. The challenge remains an entry point.On a positive note, our fabled, $1906 level has not been surpassed to the downside in any serious manner. We need to see that level hold for the week's close. If we fail to do so, we may yet see another lurch to the downside, before consolidating for what is likely to be a resumed rally. We will, in advance, note the importance of $1850 as a target level, if we do start to break down.