December 7, 2021 - (Gold Market Wire) - Covid back in the headlines, lockdowns loom in Germany? Gold does nothing. Premonitions that Russia is about to invade Ukraine. Gold? ...zzzzzzz. Taiwan being buzzed by dozens of Chinese military jets. Gold? Yaawwnn.

Q: Where's Gold???

A: $1784... still.

What does it take?

We don't go up - we don't go down... Oh, to be short the $1800 strike!

Our spec short got scratched, because yesterday's horizontal level held. There was nothing in it. You can't lose money in a market like this. The problem is - you can't make any either. Still, we must remain realistic. The power downtrend has been negated and the trend line remains in tact.

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Why is Gold in the doldrums? In our estimation its probably because the oil market is where all the action is. Nigh on 10% higher in three trading days. With competition like that, not many people are going to be running for the Gold market. We've written in the past how many of the banks used to Gold and Oil traders with a similar remit. Well, it looks like they've parked their Golden arm, and decided to go with Crude.

And, really, who could blame them?

December 2 was the big flush out it seems, and that long tail sure looks like the early August formation in Gold. As a historical foot note, it just might be worth remembering: In the six month run-up to the first Gulf War Gold jumped some 50% off of a low level. But when the infamous Baker-Aziz meeting concluded on January, 9 1991 and the First Gulf War was more or less set in motion - Gold did just about nothing. Oil, however, soared. Is there a lesson there? If we are close to war in Taiwan or Ukraine, could it be that Gold has already made its big move? We have no answer to that - but its worth examining the historical record. Of course the adversarial relation between two (or three) potential belligerents in our present case, can hardly be equated to the USA prosecuting a war against Iraq.