Gold Market Wire
News, analysis and commentary for gold traders and investors
Silver Market Update
Metals Sell Off Sharply in Far East
August 9, 2021 - (Gold Market Wire) - Even by Silver standards, the Asian sell-off in the Metals market, just around midnight European Time, was epic.
The New York opening is going to be an event of some importance. As far as our spec long goes, we are thankful that it was only a spec, and even more thankful to be asleep during the event. As such we are only marginally offside. Our expectation is that New York's gamma traders will have some buying to do, which may provide us with an opportunity to trade out. So, trade-wise, a small problem, but big picture, our call for a reversal of market fortunes has worked, and why we said that staying out of the market would have to be viewed in terms of weeks. We have had the 'waterfall', now we have to see if we are going to stage a recovery.
In terms of market outlook, one can certainly paint the picture that sell-offs like this galvanize the necessary energy for big moves higher. Students of the 1970s bull market know this. Gold was halved, from roughly $200 and ounce to $100 before exploding above $800. But this took several years. The downside was protracted and no place for anything but a hardy investor to hang out. In short, it was mayhem for traders, and margin was a suicide mission. Could we be about to begin that journey? Well, it can't be ruled out, but we also must acknowledge that the 2011/12 - 2016 period served that purpose quite well. This is a very different market. All we can do i take it a step at a time, and try and trade with discipline. Right now, the New York opening looms, and if nothing else, our decision to close even our core positions a few weeks ago turned out to be the right move. As for now, the bull remains in tact, but if we shave another $100 off of Gold, we could be in for some serious carnage. Of course, once the carnage clears, and everyone has been massacred and vowed never to touch Gold ever again, we will very likely rally. We haven't had a true blow-off top yet, and that leads us to conclude that the Bull is still alive.