Gold has been going sideways in a triangle for 3 months now and finally broke out of the triangle heading upwards, scoring a minor victory. See the chart below where I drew in the green upper triangle line and the red lower triangle line. If it had broken to the downside, that would not have bode well for Gold buffs.
As it stands, GLD is now bumping up against another resistance level shown by the blue bold line touching the tops of a larger triangle. For now I am on the long side of GLD and saw a modest increase in my holdings. See the entry signal. It had been a little confused before and had been consolidating.
The contrary picture is of course the US Dollar. As GLD has gained strength, the dollar has weakened, This is the Yin Yang of currencies - a strong negative correlation in statistical terms. As holders of UUP (US $) take flight, there is a rise in GLD. Of course if you were simply trading the US $ you could also place your money into UDN which is the reverse of the US
UDN goes up when UUP goes down.
Gold is much more beautiful though and any time I take a look at my wife’s 1 oz coins or better still, her Indian 22 kt jewelry, I am awed by its shine and luster.
In trading however, GLD or IAU is the way to buy Gold holdings. No emotions there. When there is the down signal, I exit and sell…
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