News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
GOLD MARKET WIRE...NEWS AND INFORMATION for GOLD TRADERS AND INVESTORS ....
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Opening

Gold Rally Reverses as Trump Delays Stimulus Talk

October 7, 2020 - (Gold Market Wire) - The rally in Gold, which was starting to take hold, with the all-important horizontal resistance being cleared at $1906, was dealt a setback after US President Trump cancelled all cross party discussions on a new stimulus bill until after the election. Gold, which had made its way to $1920 on the news, reversed sharply, as the 30-minute chart shows:

...market drops on the news

A news related drop, not unlike Trumps Covid-positive announcement, which should probably be bought. News related gyrations usually reverse quickly and this one is no different. What's important was that the market, prior to the announcement, was developing a bullish posture. That, fundamental strength, is not going to abate anytime soon... but still, one must ask, if stimulus is delayed until after the election, and the election is almost certain to be completely disputed, when exactly will talks resume?

In that type of scenario, one imagines that a full-blown monetary crisis may well take shape.

Tangentially, within the commodity complex, our advisory yesterday on Corn has been taking shape nicley. A 2% gain and a solid follow through today. We are heading into the beginning of a food-related price spiral caused by bad weather and the collapse of supply chains cause by the economic lock-down over Covid. Higher prices across the food spectrum are coming.

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