Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Update
Gold's Mixed Picture
September 25, 2023 - (Gold Market Wire) - Our attempt to capture some spec length was, thankfully, stopped out for a small loss. That old adage 'cut losses/run profits' was prescient this time, and we went into the speculative position with the proviso to cut quickly if we traded back below the downtrend line. This limited the loss. We warned at the time, that the pullback in the US Dollar was likely to be short lived. We expected a week or two. What we got was half a day! That tells you a lot. The US Dollar is on fire.
Anyway, the lesson, of course, was to keep stops tight when spec-ing the market and check yourself if you are thinking of chasing strength. Buying the first flag would have been good for a scalp. We bought the second and paid the price...albeit a small one.
Now we are faced with a mixed picture for Gold. The series of lower highs is still trapping us - but we do have an up trending channel.
Against this, of course, we must factor in the reality of a very strong US dollar, which looks likely to only get stronger. This is why our position has been, for years, 'Long Dollar/Long Gold... seemingly contradictory position, but in fact perfectly logical for those who believe we are in a Gold Bull market. The US Dollar will be the last to 'go' in this world of Monetary Mayhem. Gold needs to have a core position, and a trading position which is sometimes on and many times not.
Right now, we are flat. We are expecting the US dollar to do nothing but rise - against all other currencies...no matter how many times we hear that it is "finished". Not yet, it isn't.