I will be entering this as a full size position because I'm not using the leveraged ETF. Other than the charts posted before the minutes, one of the near term catalysts that I suspect will play out in gold are the F_E_D's lower inflation expectations near term. Gold is bought on inflation expectations, usually not on actual inflation, but before that on expectations and right now the inflation expectations short term are not very high as was evident in the F_E_D minutes. I'll likely keep a pretty tight stop (relative to my risk tolerance which is pretty high) and will be watching very carefully for further 3C signals confirming or not confirming this position.
Is interest rates about to start going up?
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Yes, I know - it does not make any sense - FED is about to cut
rates...but....real world interest rates are not always what FED wants it
to be.
5 years ago
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