Gold broke out to new highs today confirming a renewed bull market in the golden metal. Using GLD for a proxy, you can see that gold broke out to new all time highs in early October and cruised up over $104. After basing for two weeks GLD pulled in hard in a brutal shakeout move. The previous all-time highs were $100.44 and GLD saw some profit-taking as the dollar bounced. My post on October 28th could not have been more well-timed. My post went up when GLD was printing $100.67 and the low of the drop was $100.65. Upon retesting previous highs and finding continued buying support, gold exploded to new highs in just 4 days.
After a year and a half of trading within a range, gold is now free of all resistance levels and set to run. I am looking for gold to move higher quickly as seen in the late-2007 run that added $300 and ran gold into $1,000 an ounce. I expect the initial momentum move to carry gold to $1,500 an ounce. I will take profits along the way and look to capitalize on some of the extraneous movement while holding my core long position.
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