Daily Market Report

Gold Rally Analysis

The most recent rally in the price of Gold has stalled, after reaching its highest level since July, a day or two ago.

As we recently reported, the $1,229 spot 100-day moving average level is the technical level many traders say we must “settle above” before the next leg up in the price of Gold could be achieved.

The last couple of days we traded above that level, but were unable to end the day settling above that resistance point.

I find it interesting that there are many Wall Street Gold traders on the same page, referring to the $1,229 resistance level. My technical friends (traders who just use charts to enter and exit the markets) tell me they believe this level is in most algorithm programs at this time.

Nonetheless, even though we have been unable to break through this level, the price of Gold hasn’t retreated and tested its support level at $1,210. And that’s good news.

Today we see the U.S. dollar trading higher, keeping the price of Gold from advancing.

For those who follow Bitcoin, it too seems to be having the same issues the price of Gold is experiencing. The similarity that both markets are having is the lack of a catalyst needed to move both markets to the next level. At this time, it’s difficult to find a reason for higher prices.

Bitcoin of late, has lost a lot of interest and has seen a decline in volatility, something that can stall any advancement in the price. At this point in time, I see nothing that can bring this product back to life and make new highs.

Today at 2pm, the FED will release their minutes from the Federal Open Market Committee’s September meeting. Traders and investors will be waiting to see if there is any news that can move the markets in either direction.

Have a wonderful Wednesday.

Investing in Precious Metals

Many Investment advisors recommend precious metals as part of a properly diversified portfolio to provide capital appreciation, liquidity, and a hedge against conventional paper assets. Because precious metals are counter-cyclical to paper assets, a diversification into gold, silver, and platinum can therefore reduce the total risk of your overall portfolio and preserve your wealth. History supports the premise that investment in precious metals is the best protection against uncertainties in the future.

Market Insights Newsletter

Sign up for the free newsletter

Sign Up