April 19, 2024 - (Gold Market Wire) - Gold produced a typical spike reaction to the (minimal) Israeli attack on Iran overnight, and has promptly returned to the narrow band it has been in for the past 10 sessions.

The trend line in Red is running out of room vis-a-vis the upper horizontal band that makes our resistance line. We'll be resolving this shortly. Despite all of the spikes, we still haven't closed above it. Today is, after all, Friday...but let's not anticipate the market.

The usual "buy the rumour, sell the fact" was in play overnight/today, and in this market, you had better learn the rules of that game. Chasing news, no matter how big it seems, is a fools errand. There are already enough reasons to be long. Juicing the position on news is almost always a bad move...as in 95% of the time bad. (We suggest you play the odds!)

One of the true reasons to be long, as the past two weeks has shown, is that Gold is remaining strong while the stock market sells off. That is a piece of readily observable information of real value. We are at something of a watershed. Just as we have been writing, this inclines us to believe that the market isn't being driven by the usual Wall Street trading crowd. Other, bigger, and internationally diversified players are impacting the market. Again - it is institutional buying. We are no longer following the pattern of 'when the stock market goes down - Gold goes with it'.

Everyone involved in this market should be contemplating this issue. It is highly unusual for Gold to maintain its posture, and even rise, when the equity markets are taking a hit. That tells us the people buying gold aren't the ones trading in western equities... or if they are, they aren't cutting their Gold positions to raise cash when the margin man comes marching.

That is something of a revolution in Gold, and tells you just how strong the market really is. Lastly, remember, the Gold market is small, although the investible inventory held is quite large. If the traders aren't controlling all of the vicissitudes of the game...then someone else who isn't usually there is involved. We think they are.