I changed my mind about gold only a few days after my entry into the PowerShares DB Gold Double Long ETN (NYSE:DGP). I am too nervous sitting right up here near the previous highs. My weekly chart on the SPDR Gold Shares (NYSE:GLD) looks quite promising, but the problem is I am still somewhat unsure how gold will react to a new topside breakout in the stock market.
Sometimes the stock market can ‘steal the thunder’ from gold on the premise that things are getting better in the world economy and then they like to spin it saying why bother owning gold.
So I would rather be cautious here instead and see how things shake out or we see a huge sign of strength to new life time highs. Honestly this is what I should have waited for in the first place.
The gold market in the last month or so has not really shown much volatility on the advance. It is somewhat suspect. I would have thought we would charge ahead very quickly to break to new highs.
Anyway, maybe I am over analyzing a bit. Still I want to see real confirmation and to see gold price reaction after a topside stock market breakout.
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PowerShares DB Gold Double Long ETN (NYSE:DGP) Visit Our (DGP) Category: HERE
SPDR Gold Shares (NYSE:GLD) Visit Our (GLD) Category: HERE