News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
Subscribe to receive our market report service:
Market Info
Feature coming soon.
Thank you for your patience

Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Opening

The Gold Sell Off Continues

May 27, 2020 - (Gold Market Wire) - Gold continues to weaken this European a.m. as the 50-day moving average comes in to view. That will be the first challenge for Gold to face.

the trend lines have dropped and the 50-day is coming into play.

Thursday's trend failure was enough to give cause for concern as the market blew right through the up-trend line, but the false/weak rally on Friday, that perfectly touched that uptrend and failed gave us confirmation and told us to stand aside. It's all there for those with eyes to see.

So, on to today. No doubt about it - Gold is weak right now. We've got some fairly important horizontal support coming in at $1682, followed by the 50-day M.A. at $1675.28. The downtrend is setting the tempo..and until it's cleared, Gold won't be rallying.

established downtrend

It's no surprise - the perma-bulls have done it again. Will they ever learn? They got encouragement from the silver rally and once again their battle cry went up, "This is it!". But, of course, as ever - it wasn't. We penned a highly bearish report early on Monday with

...which referenced our Friday warning:

"Markets are meant to be traded not adored. On Friday we warned, "Those who are more inclined to book profits and trade out should probably do so. The chart is not encouraging. ... If we get a rally up spec traders may want to pick a place to flatten a bit or cut completely" We see no reason to alter that this morning. Get flat and wait. Wild-eyed gamblers can think of getting a small spec short on."

We'll wait and see how the market squares up to our two challenges.

On the Silver front the market is drifting, as the silver/gold ratio falls slightly under 100. Silver has had four deathly quiet sessions, and it is unlikely to remain that way for long. It's not in silver's nature. We would like to point out one component of silver which is going to be examined more and more as time passes. There is increasing talk, as is natural, of Gold confiscation taking place, and the general outlawing of private ownership of Gold. This is not an unreasonable fear. Government has little intention of allowing people to by-pass the economic cordon they are creating by allowing people to hold Gold and circumvent a currency devaluation/bail-in/sovereign default. If they had to make one play, it would probably be for Gold (followed by capital controls)... and Silver might be left untouched. After all, no one is "leaving town" with a million dollars of Silver...the ship would sink. And this could be behind the slow change in the silver/gold ratio. As a beauty contest, silver could become a winner by default. That also means eyes could turn to platinum.

...and this publication may have to change its name to Precious Metals Market Wire eventually.

< Previous articleHome pageNext article >
<- Go Back