January 12, 2024 - (Gold Market Wire) - Direct attacks on Houti positions in Yemen, by America and Britain, have propelled Gold to break out of its recent downtrend.

A volitile 24 hours for Gold. First was the attempt to push the market through the uptrending line, which failed, and then, the turn around and the break of resistance on the news of coordinated attacks on Yemen by the US and UK navies. Make no doubt about it, things are heating up, around the world.

The first indicator was the move in oil, which saw a massive gap higher on the news, and is now trading up 4% on the day. New York will probably take oil higher.

On the Gold front, as we said yesterday, we were looking for an entry point. With the falling of our resistance line - we certainly got it.

Needless to say, we can't see any immediate end to the hostilities. The Houti have vowed reprisals, and they have a reputation for following through. They have fought off endless onslaughts over the past few years, and seem to relish confrontation.

We may have just put in a major low... maybe for the year, if not the half year. It is now in the interests of the players in the mid-east to raise the intensity of the war in an attempt to damage the Biden Presidency in an election year.

It is time for length, and some measured leverage.

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