September 25, 2020 - (Gold Market Wire) - Gold has bounced off the 100-day moving average as the selling abates. The question now becomes, can a rally develop here?

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The easy answer is that its possible, but not something you'd like to take beyond a simple day trade. Once again, the whole world got bullish, and the market simply loves to disappoint people, and also enjoys driving them mad. That's why you don't marry a trade. So a short spec long, as punt, only, could be tried. But this has to be more of a scalp/day trade than anything more important. We've had some fairly dead-cat bouncing lately and fear is in the air right now.

Technically, all of those vaulting gaps in June and July, that took us above $2000, are unwinding. Those gaps, define the horizontal support and there are a lot of them, that have been deposited on the chart during the rally. $1818 and $1745 are significant ones below the market. Above the market $1887 and $1904 stand out. The 23.61% fibonacci retracement had some relevance on Wednesday, so we could find a little support there. But Thursday we traded through the level (see chart), so let's not get overly excited about it. Sometime indicators work, sometimes they don't.

Let's not dismiss the importance of the Friday close, but temper it against the fact that we will have a monthly/quarterly close next week, which will be of significant importance.