New Upleg for Gold

Is the "re-risk" trade back on for gold? Last week everyone was "de-risking," remember? The pattern carved out in the SPDR Gold Shares (NYSE: GLD) since the May 12 all-time high at 122.24 argues that major "de-risking" (otherwise known as profit-taking) emerged into the May 21 low at 114.01 (-7%).

All of the action off the 5/21 low into yesterday's high at 119.08 has the right look of a new upleg in the GLD that should revisit the May high in the hours/days directly ahead. It is interesting to note that gold prices (the GLD) have climbed over 4% during a 3-day period when the dollar has declined versus the euro, which suggests that gold prices now are showing us they can rally in the absence of a flight to safety into dollars and Treasury bonds.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!