January 5, 2022 - (Gold Market Wire) - There is no doubt that, as traders, we at GMW have been un-impressed with Gold. Last year produced little in the way of a sustainable rally, and finished weakly. The start of the year, the middle of the year and the end of the year was a succession of lower highs... i.e. poison to the health of the market.

Going back further doesn't help the picture:

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With this in mind we must take today's move higher with all the scepticism it rightly deserves. Yes, a nice gap up, a short-term down trend cleared... where have we seen this picture before? Well just about throughout the entirety of last year. The problem we have with Gold is that it now would take a real move of significance to become bullish for the medium term. Long-term, yeah - the outlook is bullish...if you go out 2-10 years. But in the next 2-6 months? Probably not.

So yeah, the markets up. Let's all jump up and down and get all excited about! Let's 'pretend' that $5,000 is "right around the corner"!

We have little left over length from December, but we are getting out of it when we see this latest rally start to wane. We will also be shedding half the core we picked up ages ago.

Gold will be back. The "bull market", such as it is (i.e. the one from the year 2000), is still in tact - but its not a traders market. There is simply too much action in Crude Oil and FX to get carried away with Gold these days. We maintain our US dollar length - much to the consternation of the Gold crowd, and we see real opportunities to actively short both the Japanese Yen and the Euro. And Crude Oil is the real focus of our attention.

Sometimes, you have to go where the action is.