Gold is struggling at the same resistance lines it's hit before. Chartists see this as a large inverse head and shoulders pattern, and from a point and figure charting perspective we see a double top breakout.
Most traders see the decline of the USD in conjunction with the rise in Gold. At Blue Chip we own a position in GLD, having sold off two thirds of our position several months ago when we hit the exact same top.
Several months ago, at the top as we sold, we suggested waiting for re-entry to GLD at 870.00 an oz up to 920.00 an oz. The chance has not come yet, but we're charting to see if Gold can break the $1000 barrier short term.
Subscribers at www.bluechipoptions.com will receive a detailed recommendation before we play short or long, as Gold is simply "waiting" right now.
