Where will Gold Go Next?

Here’s what we know. We’ve been up 65% on Gold (GLD) and have now sold 2/3’s of our position. Over the past year we’ve been bullish on GLD and GLD options and have made money on 8 trades. Each of them have been long, and on upside moves.

If the markets continue recovering GLD will be seen as less safe, and all charts on Gold show the same topping area.

Is it time to short gold? No, but it is time to sell out of gold by at least 2/3 of your position. While Gold has risen Blue Chip Options has made great money, and recommended 15% of our portfolios in GLD and GLD options.

We now see it near tops.

Note reversal potential begins at 90.00. Traders interested in shorting GLD should consider any At The Money GLD Sept Put Option. Buy at market when GLD closes below 90.00 down and hold until GLD drops to 82.00 to 84.00, setting a 50% stop loss.