Gold has staged a fabulous rally from about $1220 to $1245. Using the December futures price chart, I’ve defined the $1300 – $1350 area as a spectacular profit booking opportunity for investors. Please click here now. Double-click to enlarge this gold chart. I’m an eager gold bullion seller now, but I’m less eager to sell gold stocks or silver bullion. That’s because they have not taken out their February highs while ‘Queen Gold’ has done so easily. Gold has clearly been the leader. It’s been a great upside ride, and now it’s time for investors to book solid profits with a big smile. I’ve been adamant that gold is on the cusp of a two hundred year ‘bull era’. It’s themed around the love trade in China and India. For that reason, core positions should not be sold, but short term positions bought in the $1200 – $1250 area should definitely be sold aggressively now. Investors who are nervous that they will miss out on more upside action should buy call options while selling some bullion. Call options are like lottery tickets; if gold surges above $1350 and runs to $1400, the call options will rise in value quite significantly.
This post was published at GoldSeek on Tuesday, 5 September 2017.