March 4, 2021 - (Gold Market Wire) - Gold is settling down a bit from its recent violent sell-off and gives the appearance of finding some sort of bottom. The temptation is there to start gathering length in the belief that a rally will shortly ensue. But we remain cautious. The lack of downside follow-through is certainly a plus for Gold, but we can sense no significant buying interest either. The Goldbugs have been shattered - first gradually - and then all at once...as the saying goes. Where do the buyers come from now? And why would they be interested in Gold when Oil is proving itself to be the commodity item of choice these days? Simply put, it looks like Gold is going to have to wait....yet again.

When we scan the horizon for some guidance markers, we are really only left with Horizontal support, somewhere around the $1676-96 area. We are inclined to see if we work our way there. While we do not dismiss our present resting place - coming as it does from the mid-June low, where the last serious rally began, we are more inclined to see if we get a bull flag to indicate a buying opportunity. Length, if established here, should be small in nature, and one should be prepared to hold it for several weeks.