August 3, 2020 - (Gold Market Wire) - Gold has started off the month on a weaker note, pulling back just before the New York opening. The question everyone is searching out is whether or not this means a test of support is at hand. A look at the chart shows some markers.

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As the chart above shows, even our recent 'red' days have had minimal contributions to a sell off, but have functioned more as a means to flush out weak length with volatility. Only two out of the past eleven sessions have produced down days as minimal (though volatile) as they were. That's a fairly heady run, and reason for caution and patience. The lowest of these lines, showing the long-term trend is isolated in the chart below.

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So, the question behooves us... are there more buyers out there to keep this bull running? Many of the usual/traditional retail buyers of Gold around the world, from India, and from the Gulf have been sidelined as of late. Retail buyers of Gold in the Middle East, like the souks of Dubai have fallen by the wayside as people depart the region on the back of fallen oil prices. Likewise, in India, the marginal buyer is more concerned with non-discretionary purchases than those of gifts (read wedding related Gold.)

If we get our anticipated sell off as discussed in our Monthly report (free sign up on Homepage), the question will, of course, be, how quickly will the buyers step in? That is impossible to foresee, but only becomes clear after the fact. The answer is, of course, to scale down purchases, when/if the selling starts. It's unlikely that any sell-off will be either dramatic or sustained.