Good old gold! It never ceases to raise the pulses of those enamoured with the yellow metal and trading forums across the globe are abuzz with gold's move today.
One would think that I would be a gold bug, what being of an apocalyptic bent; and sure I have a few obligatory Krugerands etc. It's one of the futures contracts I trade too... why not?
To me it's just another commodity and it's loose inverse relationship to the dollar can be seen in several commodities, but a hedge against a financial apocalypse? Maybe. For sure gold will soar (in dollar terms) if the grenade the financial system has in its hand blows up in its face, but so will other commodities such as silver, copper, oil... maybe even ags and softs. And you can bet your arse I'll being buying with ears pinned back if that happens.
In the above chart, which has the US dollar index plotted also, you can see the loose inverse correlation. But it is very loose. To me it's not a good hedge for the dollar, really. So I trade it purely on chart action, with a lazy ear on the bullshit fundamentals.
Chart wise, today's move is interesting in that it takes us up to supply line and so waiting to see if it breaks out, but hell's bells, nothing to really have an orgasm over. Certainly if this was a stock chart, it would be mildly of technical interest and in this context it is hardly worth going agog over.
But the thing with gold is that by the time it is really interesting, it good be too late, so building a bit of a position in here makes some sense.
But I'll leave all the salivating to later... possibly