I have been talking a lot over the past weeks about Gold rallies, I’ve been buying since 12750 and am now around 1341. I will continue to hold longs for the following reasons.
1. There is an increasing shortage of Gold in India.
2. China is hoarding Gold.
3. You cannot print Gold, it has to be mined.
4. The dollar has suffered a huge knock back from the government shutdown/near default.
5. Because of 4, there is a move afoot to develop a new reserve currency, and guess what, Gold is the current favourite, in fact India is already buying oil with Gold.
6. It’s shiney.
Just to chart my trades a bit for you I rode two lots up to a top then let it retrace then bought again, I was looking for a break of 1345 which we got yesterday so I’m now back with two lots on looking for another days upward movement.
How high will it go?, well I’m not too bothered as I have a 3000 pip trailing stop, this protects my risk/investment but means I don’t have to spend all day staring at charts.
We have UK GDP out today so this should be interesting.