Gold gave us a few good entries since early February; from February 3rd through today gold has run almost $100 higher! Silver has even outperformed, extending to new highs. Both precious metals, however, have begun to pull off a bit. After such big runs, a little bit of rest should not be a surprise.
If gold can hold above $1390ish, or $136 in the SPDR Gold Trust ETF (GLD), it should be on alert to get above the highs of last year. I’m in a small position here using $136 as a stop. If it trades above $138.20 I will look to add and then see what type of velocity it has to get through last year’s high of $139.54.
Gold has a lot to prove right here, but watch it close. Here is a video where I go over the strategy on TheStreet.com in more detail.
*DISCLOSURE: Long GLD
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