Gold Market Wire
News, analysis and commentary for gold traders and investors
Gold Market Opening
The Big Gold Question...
March 10, 2021 - (Gold Market Wire) - The real question on everyone's mind can be reduced to the simple one, “Was that it?” That's what metals markets participants are trying to figure out. Is the sell-off over and is it time to buy? If only we could see the future so easily – we'd all be stonkingly rich. But, alas, we cannot.
Still, there are other facets of the market which deserves our attention, and the first is that $1680 worked solid support for Gold. No mystery there – it was well established in the market. We called it at $1685, but in this game, that's pretty darned close. Secondly, Silver hasn't lost its Mojo vis-a-vis Gold. If traders and investors want alpha – its going to be in Silver when we get going again. Lastly, we can take heart that this Bull market is not over, by any stretch of the imagination. But, still, the question compels us, “Where do we stand … right now!”
Well, we have our spec length at $1700, and that is in the money, and we would be remiss if we didn't mention that the “spidey sense” is tingling that a position in Gold might be taken. We still have our long USD position (EUR/USD short, to be precise) and we can't see that changing anytime soon. The markets are chopping and changing, and that doesn't make life easy. There is probably another churn out there for the next week or two, so we are cautious. The market seems tight-knit now, after some fairly dramatic moves down. This could lead us to take a scalping approach between 1693 and 1722.
From a purely investment stand-point, one would be foolish not to add length here. The sell-off has created a very solid opportunity. But from a trading perspective we are still on the sideline – holding our spec length to give us a touch of exposure. Still, to be clear, the time is getting close to take a position. We think (opinion only) that seasoned pros are starting to build length. If we really see $1680 as the bottom, we should be positioning length on any pullbacks over the next week or two. We can also be prepared to cut half of our new length if we get weekly closes under $1670.
So, investment position, i.e. core position, is being added to. Trading position, buying lightly on down moves sub-$1700, but mostly scalping within the above-mentioned parameters. That's today's strategy.