Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Tightening up the Gold Trendline
July 3, 2020 - (Gold Market Wire) - The Gold market lies becalmed as we head into the 4th of July weekend, but we can start to tighten up the trend line a little which will gives us some bearings for next week.
Not many people in the market today, which is understandable, given the restrictive nature of travel these days. Those with places to go have gone, well in advance, leaving the market quiet. Still, we tightened the trend line up, as today's low gives a more refined shape. The small 'trifecta' on the 17th, 18th and 19th of June makes a bit more sense as an indicator after today's low. The line will have to hold next week to prevent a drift lower.
Gold is about to get even more interesting than of late. The pundits are all rabidly bullish, but then, they usually are. Gold has made a quality effort over the past year, clocking up nearly 40% in upside action. That's fairly serious stuff. But we're still going to have to vault over the overhead resistance at $1784 Monday to follow through.
So enjoy the weekend if you're celebrating, and even if you're not. The Gold market is flat and essentially closed, and Europe has gone home early, as it usually does on Friday. With no market in the USA an early exit makes sense. Next week is going to be important, as Gold will shortly be forced into a proper showdown, between the challenge on the next leg higher in this strong bull market, and the chance that a slow drift lower could also commence. Right now we tend to rule out any pronounced drop because the underlying factors supporting the market will probably prevent such an outcome. Central banks continue to acquire Gold, which is a mainunder current in the market, along with investment demand and a generally unstable economic and political condition in the developed world. Those factors will prevent any dramatic sell off, while the drift off remains a possibility.