April 20, 2023 - (Gold Market Wire) - The recent trading has, yet again, revealed the absolute necessity for discipline in the trading arena. We warned several days ago that we were getting ready to make a strong upward surge that would probably signal the end of the recent upside action, and sure enough, as we approached $2050, we spluttered and stalled, and reversed sharply. $2048.76 was the top. And, as the Trading Manager says, that's as close to bullseye as you're going to get in this market. The level was coming into range; the channel to was being touched; the failure to surge through was evident... that's why we aimed for a 50% cut instead of 1/3.

Then the real challenge came. Whether to cut the remaining 50%. As we were still in the money we played wait and see, but it wasn't easy. The horizontal ($1985.6) got taken out yesterday, but recovered into the close. That intra-day low adjusted our trend line and the above picture is where we stand, presently.

Our commitment to the discipline kept us firmly in profit when holding all length would have turned into a proper headache. We got a small discomfort, instead. These are the machinations that create winning situations and avoid big problems. Our Watchwords - "Stop trying to hit home runs" (or 6s if you like cricket) worked wonders.

If nothing else, our downside technical markers are taking on an increased importance. We're temporarily out of the woods, but we are increasingly cautious. We have been impressed with Gold's quick recovery, but remain concerned about a possible US dollar surge. One way or another we are going to get a resolution to this soo. We either blast through 1.115 on EUR/USD or breakdown below 108.5.

In such a situation we remain ambivalent, and are now looking to get out of the balance of the length. We have a war that has paused, but the chances for a resumption seem high. A proper resumption of large-scale hostilities could see the Euro hit badly, the Dollar rise and Gold go into a schizophrenic dance.

That's one chasee we'd rather sit out.

Bottom Line: we're looking for a chance to get flat.