Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
Gold Up to Its Antics, Again?
December 15, 2020 - (Gold Market Wire) - Call us cynical here, but we can't get excited about this rally in Gold, other than to throw a small spec short at it. Truthfully, how many times are you going to watch the same movie in a four month period before you lose interest? (...and what was that thing Einstein said?)
The market is lack lustre and we can't see the reason in getting excited about it right now. The political machinations in the USA are stalling things and only the premium sellers in the options market are getting any traction. Last week we noted that a short of the $1800 strike (as a vol. trader) might be the best strategy and we will stand by that for now. The odds favor working towards there.
Meanwhile, back in more volatile instruments - we got our sell off in Wheat yesterday. A nice hefty move lower. We are inclined now to add a small amount to the core position and perhaps add a small speculative long, after such a large sell-off. Ag is volatile, and the Soybean pit has seen off more professional traders than any market I know. By comparison, wheat and corn are sleepy havens for the criminally sane. But we still advise small size...which you should then cut in half again...because agriculture wields a mighty sword when it swings.
We've touched down right on the technical point...so we are given to view it as a purchasing point. That is: a purchasing point within a market we feel is in a highly bullish posture for the medium and long term.
A final note: we are long USD vs the Euro just below, 1.22. We grabbed the high point very well, but are concerned about the lack of follow through. We are imclined to take the small profit we have and close the position. If 1.22 gets bettered in a serious way... then the US Dollar will be ready for another move lower. Yes, we know the whole world is bearish the Dollar, it's one of the reasons we put the length on at 1.22 (i.e. - long dollar... which equals short EUR/USD), but we aren't getting the follow through action.