December 3, 2021 - (Gold Market Wire) - Yesterday we flashed a warning early that Gold was in trouble, and before long we were nearly $20 down on the day. We've recovered a bit since yesterday's $1761.00 low, but the painful truth for the bulls is that the power downtrend is still casting its tractor beam over Gold.

Short of a significant change of fortune at the close, the weekly formation for Gold looks poor. Weak closes on Friday's have a tendency to lead to Asian sell-offs on Monday, so if you are trapped long, and we don't close COMEX over $1780, you better get out of the market.

Yesterday we made it clear up at $1776/$77, "the pressure is building, and length in Gold should be extinguished unless a dramatic move up happens - and soon!". That turned out to be the final warning - and down we went to $1761 shortly after that. Today we had one last chance to get out at the $1776 level, and those who haven't taken it may have to prepare for lower prices yet. The market is weak, and until the power downtrend is extinguished, there is little hope to reverse the market.

The continuing strength of the US Dollar is giving no respite, and the chart looks positively negative.

As we've been saying for sometimes, the US Dollar is on a rampage. And is not over yet. Until we bottom out - who knows where - Gold is going to be kept on the back foot...until we break the spell of the US Dollar. If you think that means Gold is hostage to EUR/USD, it is not. It only is in the short-term. Gold has had plenty of upside action alongside the US Dollar's strong upside action...especially in August-October of this year. But the head of steam in the US Dollar is simply so strong we have run out of Gold buyers. They have gone on stroke, much like we have since $1885. They'll be back, but the latest surge in the US Dollar has to abate first, or at least slow down.

So far, no sign of that.