Market Report: Gold Finds Support Line

by Alasdair MacLeod
Gold Money

This week gold and silver continued to consolidate bull market gains. In morning trade in Europe gold traded at $1958, up $17 on the week and on the same timescale silver rose 88 cents to trade at $27.58.

The screenshot below shows that gold has adhered to a definite uptrend since the March low.

[…] Every time the line has been tested — often by an intraday low — the price has rebounded. The most recent tests were on Wednesday and Thursday, both failing to penetrate below the trendline. It would therefore appear that the gold price will go higher in the coming days.

The situation on Comex is little changed, with the bullion banks finding it difficult to close their short positions. This is illustrated in the table below, which is derived from the most recent Commitment of Traders report, dated 18 August, and its differences from the report of 11 August.

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