You may have noticed gold was on an upswing lately. (haha) Starting Dec 23rd gold began a fairly steady climb, from the GLD 108 level up to 116 before taking any meaningful break. Then, following a 3-day dip/consolidation, gold resumed its upward movement, hitting a high of 118.59 last Wednesday.
After confirming that high within a penny on Thursday, gold started another drop. Yesterday’s low of 116.15 came early in regular trading hours, after which gold trampolined up toward 117. In early action today (Tuesday), GLD has already touched 117.60 with no real signs of backing off.
So what’s going on? Well, as always there are stories to cover every possibility. The art is in choosing – some would say detecting – the correct story. The correct story is any story that agrees with what happens in the next hours/days/weeks. (Pick your own time horizon. You can change it later to fudge your winning percentage. haha again)