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Golds quick price move increases the odds of a correction
Created on: 7/3/2020 4:30:49 PM

golds-quick-price-move-increases-the-odds-of-a-correctionEvery market corrects, maybe profit taking, maybe of allowing those who missed out, to get in!


The current open interest on the gold contract looks to high after a very fast price move, it looks like 2008 may be repeating. A quick flushing out of the weak hands open interest may take place before a real advance in price takes place. The correction may be on the back of a wider sell off of risk assets (either before of after US elections) as all assets suffer contagion selling (just like 2008).

This blog view is a gold price correction of 10% to 20% range is a buying opportunity. Of course we may see  a very minor price correction but a long time correction, a price or time is correction is expected, we shall watch and wait.


The explosion of open interest (chart below) along with gold price suggests 'all have loaded up', the big boys wont like this as they will not want to share gold gains with the public, one therefore can expect some sort of wash out of the weak public hands holding of gold future contracts before a real advance takes place. 


Gold open interest






Also price has meet channel resistance.

Gold channel




Also price is near upper resistance of the previous high.


Gold gann



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Investing Quote...

.."Successful tape reading is a study of force. It requires the ability to judge which side has the greatest of pulling power and one must have the courage to go with that side"..

Richard D Wyckoff


.."Earnings don’t move the overall market; it’s the Federal Reserve Board… focus on the central banks and focus on the movement of liquidity… most people in the market are looking for earnings and conventional measures. It’s liquidity that moves markets"...

Stan Druckenmiller


.."man exists for the achievement of his desires"..


Ayn Rand

..“Because of the extreme challenge, one must commit full attention to it.” Market speculation is “no different than trying to be a successful doctor or lawyer … you simply must devote yourself full-time to the study of your craft”...

Bernard Baruch


.."The stock market is filled with individuals who know the price of everything, but the value of nothing"..

Philip Fisher




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