September 28, 2020 - (Gold Market Wire) - Gold is struggling again, this European a.m., as the 100-day Moving Average comes into range. Friday produced no 'take home' rally for the weekend and one starts to believe that outright civil war in the US and a Chinese invasion of Taiwan couldn't get the Metals moving again. Overnight news that Nagorno-Karabakh has erupted into war, bringing conflict close to the Iranian border, has been met with indifference in the metal market.

Make no doubt about it - Gold is in trouble and needs to get a move on. The hourly chart (below) shows the 100-day m.a. crossing over the 50-day and the sell off that it indicated.

Our day trade idea didn't work out, but the damage was very small. Importantly, we put it on only as a day trade, which limited the damage significantly. Damage limitation is part of trading, and knowing what kind of trade you are entering into, spec/scalp/trending or core is all part of the sizing process and the exit strategy that goes with each. Knowing that we were trying a day trade one was what keep the loss small. We ran the risk and cut it, when it didn't work out. Holding on would have proved damaging. We are on the sidelines now, watching and waiting.

Right now Gold is in a bad position. The dead cats have bounced all over the place, the rallies are pathetic and the market looks un-inspired. A weak monthly/quaterly close will be the last thing this market needs. If it keeps up, we will be heading lower.