Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Metals Move into Recovery Mode
August 13, 2021 - (Gold Market Wire) - The Metals markets look like they are now recovering from a classic 'clear out' scenario. 'Someone' big liquidated at midnight European time, i.e. after market New York, trading time Asia, when the market was thin, and cleared out the weak length and popped the resting stops. Classic Clear Out. Yes, as we noted, the market was weak. But what better time to run a raid? Now we are recovering, and not following through to the downside....on a Friday. That gives the bulls an even happier close to the week.
We laid the scenario out with solid accuracy in our last article...where we noted that both core and trading position were being re-established. The close we are (likely) heading into, is going to be a solid one. The funds will likely be buying. Whoever liquidated, and didn't quickly re-establish length, will be kicking themselves today - or, very, very soon. So it goes in the world of Gold and Silver. When one knows the nuances, it is much easier to decipher the runes.
So we are climbing back into the channel, albeit a down-trending one, but that is an anomaly which we feel will soon reverse itself as well.
Right now we are holding all length, including our spec from the rout. As we noted yesterday, we have come off of the sidelines strongly, with proper length. Let's see if the market, and COT, want to dump length enclose. That will be the next marker to watch out for.