January 2, 2024 (Gold Market Wire) - We were always concerned that the Xmas and end of year antics could be a big head fake, and now it looks like it was. The supposed "end of the Dollar" has failed to materialize, yet again. In fact, the US currency has put in an impressive performance in the past three sessions.

Eventually the action was too much for Gold to take, and the rally ran out of steam.

We didn't get through the channel...but the print on Wednesday likely got a few people to chase. Ah well, someone has to pay for the Holidays. Still we have to be respectful that the uptrending channel is still in tact, even if we're at the top end. For us, the first challenge will have to be a breakout of the channel top or a nice weekly settle above $2100. For now, we remain out of the market. The Dollar looks like it is strong, and that may hamper progress, but, having said that - line up the weekly's for a clearer picture:

The comparison is stark. Gold has performed well. And the core position of long US Dollar and long Gold has been and excellent position. The percentage move that you see in the weekly charts reveals the soundness of this strategy, which we have held for years. No, the US Dollar is not "finished" And neither is Gold.

We see no need to alter it. Trading book is flat.