December 11, 2020 - (Gold Market Wire) - An uninteresting Friday, with weak momentum means we are getting ready to scratch the spec long we put on two days ago. There's no real direction in the market right now. As we look at the bigger picture, this seems to make sense. The channel helps us define the broad picture and we are fairly stuck in the middle of the channel range.

Specs aren't something we like to take home for the weekend. Too much could happen, and the East could shred the price come (their) Monday morning. So we leave where we got in - for a scratch.

The bigger picture, as in, the one defined by the channel, isn't a great one. The lower highs are apparent, and the market needs to break free from that pattern. Our slingshot is wavering in its intent, and we are starting to get concerned that we could see one more big downward thrust before the selling abates. A US Dollar rally is a trade we feel better about - meaning vs. the Euro. Right now the Dollar could be ready to rally, and while we so no reason any longer why the Dollar and Gold can't rise and fall together, as they have for several months, the knee-jerk reaction could be for everyone to close out the Dollar shorts and cut exposure to Gold. That, in fact, may give us the final push down in Gold that will clear out the weak length, after which we could build a rally. We note, as has been the case for some time now, that the first half of the month seems to have more upside than the second. That - as unscientific as it is - may be reason enough to get flat.

So, a week without too much interest. We end more or less where we began - and the book shows little one way or the other. With Christmas encroaching we could see the market go quiet for a period. That could encourage sales of the $1800 strike, which, for those attuned to vol. trading, could be a spec worth trying.

Have a good weekend.