GCG24 – February Gold (Last:2029.30)

Gold has relapsed to the green line twice since triggering what had looked like a fine mechanical buying opportunity shortly before Christmas. It has done little since but tease, vex and antagonize, but if past is precedent, the tedium will be broken soon by a big rally to the 2184.80 target shown. That’s no assurance that buying now, at levels beneath where we might have been long anyway, will produce a better trade. Since the futures remain in theory a good bet to rally back up to p=2086.40, we’ll continue to look for ways to get aboard with risk tightly controlled. The entry risk for the ‘textbook’ ‘mechanical’ buy was $20k on four contracts.