Done and dusted

We finally reached all the objectives for the year in Gold and have had the pullback. Now I would expect sideways action between the highs around £725 - £730s and the high £600s. Thank you for being with me on this journey and I hope you all took advantage and have been able to benefit from this analysis.
For the record I was able to be 100% long from £560/565 to £725/730 - a gain of 30% in 4 months! Not bad for a barbarous relic! I am now out completely and in cash waiting for the next oppportunity to present itself.
Good trading!

Market profile Gold update - targets MET

As this was originally designed as a market profile blog here is my take on the Gold profiles.
Nov 30 short term low target MET today $1218 ....Jul09 Upprofile target MET ...Nov08 Upprofile target MET...Aug07 Upprofile target met - all between $1137 and $1200 ....£POG also had £700-£725 targets . As all of these profiles are balanced (demand=supply) there should be a reversion trade lower coming soon. There are no more off side shorts to fuel more buying from these levels. ALSO : Gold has been 100% correlated with stocks, has outperformed silver and the XAU, so shows worrying signs of speculative blow off potential. Why if it is an inflation hedge do bonds rally strongly as well? and if there is a crisis coming why aren't stocks in the tank? Or has it just been a liquidity hedge fund fueled buyathon? Food for thought ........Cash is King (for a while) .

Eureka

Well here we are - £700 target for £POG reached - and a month early too ! So what now, do we sell and say thank you very much or stay with the trade? That my friends is up to you, hopefully you bought when it was cheap back in the summer and you have a nice dilemma now.
Personally I would sell half and sit back and relax.
Happy trading ...........

Sterling Gold breakout targets £700!

Sterling Gold is now rallying as predicted out of its congestion/consolidation range. It has a clear breakout and impulsive rally that targets the old highs around £700.

I hope some of you loyal readers were able to take advantage of the pullback to buy around the £560 - £570 area that I highlighted over the summer as the location for the expected autumn rally in to the year end.

Good trading !

Is this the start of the autumn rally in Gold ?

It has been a while coming but this could be the start of the Autumn rally in the sterling Gold price. We have a point and figure breakout at £585 after a long consolidation period.

Timing is good now for a rally back up to the highs over the coming months.

Good trading......

Is this the reflation?

A couple of weeks ago I joked to a friend after the Dow Jones had managed to reverse early losses & a possible breakdown, to close up 181 points "Here comes the reflation!" Little did I know that a fortnight later we would be 11% higher in Dow & S&P, 15% in the Dax, 11% in crude oil, 12% silver, 16% copper and 37% in Xstrata shares ! Gold is the laggard, only up a paltry 5%! Having said that Gold has built higher value and moved its longest line up so now this rally has a target of $988 moved up from $964, as long as $945/946 support holds. Stops kept at $943. happy trading.....
PS anyone know what happened on July 13th to change the world?

Gold support & resistance

Short term UPprofile from 17 July - support 948.5 , 943 (stop on long) , 937
resistance 955 , 958.7 (fib 61.8%), 964.5 (target for short move)
Gold still inverse steps with dollar and rises with stocks - slightly perturbing but reality nonetheless at the moment - as my Gold Fund manager friend says in his July update:
"Equities rally, yen weakens, dollar weakens, commodities and the precious metals sector rise. Conversely the opposite is true. We have a new theory for this, that economic classes around the world could embrace at the exclusivity of all others– MIMO theory. Money In Money Out – like the best theories postulated keeping it simple works."