Interestingly, spot gold prices this morning were up about $11 at $1185, a full $30 above yesterday morning's low, despite continued acute strength in the dollar (weakness in the euro). The panic lift-off in the dollar triggered a mini-panic exodus out of gold from $1193.30 to $1155.90 from Tuesday into late Wednesday. But perhaps that is over and gold has started another upleg as money flows into the precious metal again in addition to dollars and US Treasuries as possibly the safest of the safe-haven alternatives to protect equity (cash)? I don't know for sure, but I think we better keep a close eye on gold and the SPDR Gold Shares (NYSE: GLD) in the upcoming hours and, if need be, re-enter the long side into strength. See our daily chart comparing the price movement of spot gold to that of the euro/dollar.
Sign up a FREE 15-Day Trial to Mike Paulenoff's ETF Trading Diary!
No comments:
Post a Comment