Gold- For now stay out of the yo-yo

[m_c_jacob]

Gold rose this week — so far (and I really want to stress so far) — by around 10%. That’s massive by any standard.

On Monday, I tried to catch a dip and missed it. Since Tuesday, I’ve been on the sell side — completely wrong on direction, yet somehow still managed to finish positive overall.

Yesterday my stop got hit, but after what happened overnight, it turned out to be just a scratch. With this kind of volatility, a recovery of 250pips can happen in ten minutes.

Looking at the chart — it’s bullish, no question. Should it be bought? Hmmmm...
Looking at the volatility… for me, it’s become untradeable.

Can it keep going higher? Of course.
How high? Nobody knows.
At this point, any prediction is just throwing numbers in the air.

Trading corrections, as I’ve tried to do, is a guessing game. I’ve had some luck so far, but after yesterday's stop loss, I’m stepping aside.

My take: stay out. Let others make money if they can.
A 1,000-pip rise and an equal reversal — all while I was asleep (and trust me, I sleep very little) — is too crazy. Stops can be wiped for bulls just as easily as for bears.

At some point, it will settle down and define its levels.
Until then — it’s not for me anymore.

[EmTeam]

Volatility is too wild to make consistent gains here. Waiting for a clearer signal before re-entry sounds like the best move.