Gold Rally Analysis

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 reported in the most recent Market Gage, 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.

Disclaimer: This editorial has been prepared by Walter Pehowich of Dillon Gage Metals for information and thought-provoking purposes only and does not purport to predict or forecast actual results. This editorial opinion is not to be construed as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein cannot be attributable to Dillon Gage. Reasonable people may disagree about the events discussed or opinions expressed herein. In the event any of the assumptions used herein do not come to fruition, results are likely to vary substantially. It is not a solicitation or advice to make any exchange in commodities, securities or other financial instruments. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisers with respect to these areas. By posting this editorial, you acknowledge, understand and accept this disclaimer.