Gold Update

It's been a while since I write any update on gold. My focus shifted in search for equities which able to pay me dividend. Even so, I can't resist now taking part in when gold ran to $1,000 mark. I bought Yamana Gold (AUY) on 8/25 and sold it on 9/8, the first day gold broke 1,000, for 17% profit.

I wrote in April and May about the cup with handle formation in gold and advise traders and investors to buy it then with a tight stop or a break above $1,000. As it turned out, the formation never materialized. Let's go through the charts.

April 9

May 20

September 30

Because my thesis is that gold break above $1,000 mark by the end of the handle, I am not convinced gold can move higher. I also don't believe that gold can break below $700 either because of the longer term inflationary force I foresee. To this, my thesis on cup with handle didn't happen. For those who are looking to buy gold, it may be too late in the game and should look for alternative precious metal such as silver. A good friend at Dividend Inc. wrote about it. If you are holding gold, keep holding.

Art

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