March 11, 2024 - (Gold Market Wire) - Gold has been on a tear. Of that there can be no doubt. Our trading length and increased core positioning have gone well into the money. But now the market is pausing. That is only natural after such a run-up. The chart shows the steepness of the action.

When you get to this stage, adding to length is completely out of the question. So the choices are hold, cut, or scale-back. We'll opt for the 3rd one. By 50%.

It's been a great run, but it's time to lighten up on the position. We've picked 1/2 rather than 1/3, because of the steepness of the move up. If we move back down (which we think is likely) we'll assess then where to bring length back in. Right now we'll focus on the first pullback level of 2,078.

If we start to sell off seriously - we'll focus on the 'fibs.'

So, no rocket science there. Pretty close to 2,000 and 2,050, as seen above. If we get down towards $2,000, we hope we will have foreseen the bailout, and that that will get the trading book flat. That is the real challenge - knowing where to drop the 50% remaining. We will be keeping asharp eye on equities for any signals of a dramatic sell-off. Have no doubt - if equities blow out to the down side, Gold is going to get hit. And it is in a 'great' position for a dramatic sell-off.

At $2,000, we will have to consider some serious length. The Bull market has room to run, but free rides aren't going to happen.

...and no, we are not going to $3,000 within a month! Probably not even before the 'election'... or whatever it is you wish to call it.

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