Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold Market Pauses
January 10, 2023 - (Gold Market Wire) - The Flavor of the market now is to consider the run up within the need for rest or re-tracement. We'd usually agree with that at this juncture.
But this time the market has a concern: Who the hell wants to be short if our mystery buyer of size hasn't finished buying? What if he comes out of the woods,again?
The Gold market is thin and the futures market, as one trading mentor of mine called it, "a pimple on the ass of an elephant compared to the cash market," and characterized it as "some place where people throw around little 100.oz contracts". (So, more or less, like oil and other commodities.) Whoever bought the size in the physical market took so much on, the "unload" entity who met that buying size had to cover fairly quickly. They sure didn't act like they wanted it warehoused on the books. That leaves a few sovereign wealth funds, probably 5 banks, two or three trading companies, and a handful of exotic billionaires - provided you don't count the ones who are just back to back artists and not traders at all... and who would never get the call on such a deal.
The three big buying days in early November, have revealed that 'someone' lifted the market rather methodically. That kind of chart formation is simply institutional - part of plan ... like a "Central Committee" would make. That's our take. After such an event, the market should usually unwind some of the gains. Not this time. That is somewhat unique. We had a gentle follow through. The early shape of a parabola, but now a gap. This is serious bullish action if the gap made in the past two days holds on for the weekly close.
The attempted reversal seems negated. That's why we limited the profit take to 35%. We got a pullback, but it was shallow. That's bullish in its own right.
Holding the balance and waiting for the next move and end of week close. The market is strong. Seems like some real buying is coming in.