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Gold Breaks Triangle to Upside…The Percentage Holds

gold-flag-fib1

Well, if you read yesterday post on gold, you know that the when you have a triangle, 67% of the time it breaks out toward the previous primary trend. Today, we had the breakout as you can see on the chart.

How high can we go? Will the Fed intervene to stop the advance? Both great questions.

The real chin scratcher is that the dollar was actually up today and oil was down. We are definitely in a new world as the usual relationships are decoupling.

We took profits on our Barrick Gold position but left all other precious metal positions on to ride the rally higher. The right thing to do? Booking a profit is never wrong and we have significant other precious metal exposure, so I believe it is the right thing. It may continue higher, and if so, we still have other gold positions in play, but September is a scary month to be an investor and given the gains we’ve achieved I am happy to bank the cash until the future is clearer.

We pulled back from just below $1000 an oz as the day drew to a close, so it wouldn’t surprise me to see a day or two of negative action in gold. Hang in there as we are in the middle of a bumpy ride, but ultimately we will guide you through the pot holes.

Have a great Friday and call us if you can use our assistance.

Mark