Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Precious Metals Sell Off Commences
August 11, 2020 - (Gold Market Wire) - The long awaited pullback in precious metals has begun this European a.m. - with Silver prices down some 3% and Gold down nearly 2%. The recent action demanded a pullback and Gold is now trading under $2000 an ounce since a week ago. Now the challenge is on to see where the buyers come in. Technically, there's not a lot underneath here on the trend line until about $1921. But we have to measure that against recent action where the buyers stepped in very quickly and aggressively.
Silver is also getting sheared this morning, off some 3%.
Pullbacks are healthy in a bull market. It's the moonshot that we have to worry about. Having said that, recent action has been extreme, and can't be sustained on a daily basis. Even in Gold bull markets, not everyday is an up day. "Be right, sit tight" is how Jesse Livermore described it. He is right, and that is why he is on our masthead. In the micro perspective, we can now see the challange in Silver quite clearly - the $30 level.
Recently, most attempts at selling off have been pretty feeble affairs. To get some traction we will need two main things. The first will be a sign that the Democratic Presidential campaign is imploding, and the second will be a continued dollar sell off. Those two factors will help Gold sell of in the short term...but only in the short term. As it stands now, the Dollar is doing nothing of any importance. But it must always be remembered - the global monetary order is beyond repair, and nothing is going to change that.