Gold Sets Up Well As Inflation Still A Concern
Gold is setting up extremely well in a large base as inflation remains a concern. Big bases like this offer large potential, as they wear out longs. It's almost like once everyone forgets about something, just then it is able to rear its' head to prove the majority wrong.
We saw some large volume coming in today for GLD, which is a good sign for longs. Historically speaking, the high-inflation of the 1970s did lead to a strong move in gold, as can be seen in the charts below, curtesy of Macrotrends.net.
Inflation By Year
Gold Price By Year
I opened up a position in GLD today. I have a stop loss in place to limit my downside should the trade turn against me.
Risk right. Sit tight.
Full Disclosure: I currently own GLD.
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