Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Wire
Gold Goes on A Tear
November 11, 2022 - (Gold Market Wire) - Considering Gold's performance this year, the recent action is coming as pure relief for the Bulls. We have made a serious move to break out of the downtrend, with some follow through that is, even by the seasoned standard of commodity traders, impressive. Three gigantic leaps higher, perfectly interspersed by two flat consolidation days. Couldn't be any better.
Down to coins in the pocket/back-yard etc; we've been out of the trade for months. We have no regrets. 2022 has been a terrible place for Gold traders - save for the brave few who could handle being short during the preliminary phases of WW III). Trading isn;t about cheer-leading year after miserable year although the tape is horrible. Quite the opposite, in fact. It's about knowing when to stand aside from the market as well as when to take a nice big break and watch from the sidelines. Constant involvement has ruined many a trader. It's right up there with "overtrading" as one of the main killers of wealth.
We'll have to resist the urge to "hurry up and get long!" for a brief while yet, but we must also see the recent action within the firm light that this could be the end to the downside action over the next 3 - 6 months. No doubt, the prime target has to be the $1800, which is the main pivot on which the market turns. It is highly likely that we are "going there' for a look, but a lot of the move has happened. We'll look to buy a pullback, in small... and then more just above $1700. The triple bottom on continuous futures around $1628 is a big thing also. Bears markets end this way.
On a single note of caution - those who believe that some massive change in Fed policy is somehow going to reverse the recent rises in interest rates and send Gold to the moon, may want to look at different reasons to own Gold. The Dollar's surge probably has another leg in it.