Don't Get To Complacent On Gold Near Term

On the near term even with this recent bounce in gold from my $1075 support level, I still sense that the dollar may rally further. We may see a rally on the dollar this Friday off of the Jobs Report. The charts appear to be setting up as a flag formation, I maybe early on the call, but it raises a yellow flag and one needs to keep this possibilty on the radar. Longer term I believe the dollar will trend lower, but for those that trade...just be ready to pull the trigger.

GOLD BREAKING OUT?

Is gold breaking out or is this a technical move? September has historically has been a bullish month for gold, over the last 20 years, it has risen on average 3.4% in 16 of those years. ~see story~

I suggested to my blog readers that gold was a buy last week see post

Gold's move today has been on no move in the US Dollar, I've been expecting a drop below the $78 support level. (see chart in past post). However...today's move could be seen in part as both a technical & a safety move as money is allocated into the commodity against further declines in the equity markets.

*click on chart to expand image

BUY GOLD

BUY GOLD!!! The US Dollar is going lower, with a massive deficit and no one really pushing the purchase of gold...be the contrarian. Watch the 78 level on the US Dollar ($USD) a break below that and Gold, in this chart GLD the gold etf, could see further gains. Earlier this year we saw gold climb, but the US Dollar too, reflective of the fear that gripped investors as a global financial meltdown was possible.

*click on charts to expand images