After being short Gold for 3 months the buyers have reappeared. On Thursday Gold finally broke and closed above the key level of 1750 based on June futures. This has triggered a buy signal and we are now long or in the process of being long Gold.
Our new trade, a reversal to long Gold was released at 3:00 am EDT this morning. Gold has been steadily moving higher this morning after yesterday’s breakout. Gold is up about 11.00 this morning trading at 1778. Don’t be surprised if we see a pullback to support at 1750 over the next couple of days, we will use sell offs as buying opportunities.
Silver remains short but is quickly approaching a reversal signal as well. It appears the key level to watch is 26.5 based on May futures. As always, we will wait for the mechanical system to change. It is our opinion the only way to trade is emotion free without opinions.
With the short Gold trade closing, although we didn’t buy the bottom, our profit was between 150.00 – 200.00 per ounce. We don’t buy bottoms or sell tops; we try and capture the meat of the move. For now, we are long Gold, short Silver and no longer actively trade Platinum.