Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
End of the Spec Short
November 25, 2022 - (Gold Market Wire) - When we started the spec short, up at $1777, we were looking at a return to $1725. We got $1726.98 as the low. In this business that's as close to a bullseye as you can expect. If you played it to the tick, waiting for $1725 to the penny - you need to get out of the trading environment and think about a new career.
So - what next for Gold? We must take the (few!) opportunities this market gives us at the moment, but we will, as we have for years, remain essential Gold AND US Dollar bulls. We've been sidleined on Gold as the US Dollar surge pushed the Gold part of the position to the sidelines. Unlike the perma-bulls who see every move as a reason why Gold is heading up, we've sat out the vast majority of 2022. And a good thing it was that we did. 2022 was the pits for the Gold market.
Gold is being hampered by higher interest rates and a strong US dollar. We don't think that is going to change soon. We are still bullish on Gold over the next 3-5 years, and if we get a complete monetary collapse those "coins in the pocket" will become survival mechanisms - indeed. The problem is, of course, as regards the next trade, is "entry point."
Right now we cannot see one. Being positioned short is like dancing on a razor blade, so we have no interest, aside from the speculative kind. That leaves us back on the sidelines.