Archive for 12/05/2010

It happened

Gold broke through to a new all-time high late in the US session yesterday. It’s now at about $1232. It also broke to new all-time highs in the Euro.

Looking across at equities and currencies, it seems like gold is the only asset with clear strength. We could be at the beginning of a runaway train to the upside. Gold is now officially in the clear with no obvious overhead resistance.

It’s tough to trade this kind of trend because pull-backs can be brief and shallow, and jumping in now or at a higher level could be risky. My plan is to see if we hit the $1350 projected top. At this rate, that could happen quite soon. If we get a parabolic blow-off top, the final high could overshoot $1350 considerably, but catching that exact top is near impossible.

Or maybe government intervention will throw some cold water on this rally, who knows. Fasten your seatbelts!

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