Raw gold briefly hit $1219 (US Dollars) during trading yesterday. This corresponds to 116 in GLD, our trading ETF equivalent. We won’t add a resistance line at 116 but you can see how yesterday’s high is right in line with the high of 5 days ago, and the level back in November just before gold took its end-of-year drop.
Looking at the chart, the last time GLD hit 116 it backed off to 114 pretty quickly, in just two days. This presents a decision for traders: Do you sell all or part of your position here, or hold on and see if GLD powers up through 116?
And of course the US Dollar is at a recent minimum, so their inverse relationship is holding pretty well.
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