Gold is popping this morning – and I would attribute the timing of this AM’s action to the following causes:
1. chart looked good for gold (rising lows)
2. thoughts on Wall Street that China is looking up (what’s good for China is good for gold – especially with rising cost of living there)
3. a nicely timed AM daily article from the widely read DailyWealth (typically good stuff- they are also very good marketers)
4. overall worry about US economy – worry = possible increase in monetary stimulus
Put these together and the timing of today’s pop makes sense.
If you are trading this stuff, the key is how does the day end? With a full reversal of gold’s gains? Does it hold steady or push higher? Each scenario paints a different picture on the action. My regular readers will know that I’ve already started to “sneak into gold” and now I’m just looking for opportunities to build the position (and I have my stops). I and my clients have small exposure so far and will add as confirmation of the trend continues.
Disclosure – I own gold, and an unnamed small prospect generator company that focuses on gold
Clients – own a gold mutual fund and aggressive clients have small prospect generator company positions and a gold trading position