February 1, 2022 - (Gold Market Wire) - Gold is rallying in the European a.m., and so, as ever, it is time to ask the proverbial Goldbug question..."Is This It???" Of course, for the Goldbugs, it has to be - because it's always "it". But for us, it's just another rally in market that is heading lower. We'd like to see this rally get some follow through, so we can sell into it. We remain unconvinced by Gold, and simply think it has run out of chances to prove itself. No more playing from the long side - we have switched to become a seller of rallies.

Our posture is just like in Crude Oil, but in reverse. We are buying the pullbacks against the trend line in Crude...and so with Gold, we are sellers on rallies. The last Gold rally  moved up to the downtrend line, but we doubt a revisit is in order. It hasn't got the strength.

Our spec short went very well indeed against the (purple) trend line worked very well indeed. We are now on the look out to get a proper short sell away, and seek a strong move up, or a failure to get ready and position. Ideally we'd like to see something in the $1816-$1829 range to get short. To us, the market is just a series of false dawns. We see nothing to discourage that view, presently.