April 7, 2020 - (Gold Market Wire) - Yesterday's action was heady stuff; a 2.8% gain and a 4.4% high/low range that finished on a strong upbeat. Gold is now sitting back and consolidating, waiting to make another run at the recent multi-year high at $1703.

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Nothing surprising about the pullback. It's necessary to gain the energy to make another run higher. The horizontal support has held, and looks like a good base to add length. A weaker US Dollar should put some wind in the 'sails'. The trend line remains intact, and there is a lot of blue sky above.

There is little reason to be short the market. Right now Gold's rally is orderly and behaved. With stocks firming that is another advantageous aspect to the Gold price moving up. Any sustained breech of the horizontal support will give us the signal to lighten up on the length.

It's important to hold length without leveraging up on margin. The Gold market is notorious for "tree shaking". Adding to positions should be done modestly. Swinging for the fences and chasing higher prices doesn't work in Gold. Buying pullbacks and shedding length as we run does. Any margin from previous length should be used to pay-down the position. Don't just wear the margin hoping for a moon shot. That's how people get ruined and wind up in the local bar talking about how they "had it all... until the manipulators drilled the market".

That tune of sour grapes and broken dreams of riches is the most common story of all commodity amateurs. Discipline is what works. Bravery is for fools when trading.

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