Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Bulls Are in Serious Trouble
February 2, 2022 - (Gold Market Wire) - The Gold Bulls are standing on the edge of a precipice that is about to take them to the woodshed. That precipice is evident in the chart:
We don't need to add much comment to the chart. To coin a phrase that the bulls have used non-stop since 2011... "this is it!" ... and we, for once, would have to agree... Except from the downside. One (simple) reason we are sounding the alarm bell is that when markets move lower, they do so at 2x to 3x times of the speed of the rally that preceded them...that makes for the need to act nimbly when the bears attack.
And it looks like they are getting ready to.
You can scream and shout all you want - but the market will not listen to you. You, are supposed to listen to it, for the very simple reason that no one, and that means no one, is bigger than the market.
Either Gold holds the trend line here or the elevator shaft is about to take over and drop down towards the "lower floors" of the proverbial building. We don't care how much everyone loves Gold. This is about trading. Leave your opinions at the door. If/When we fall under that trend line, we will be extending our short positions. The last Gold rally was pathetic. We opined yesterday that we thought it would be weak...well, it was even weaker than expected. Gold has done just about zero in the past 6 months+, except meander around $1800. The rallies have failed to get airborne. We are, in our humble opinion, now ready to test the downside.
Gold is in trouble.