A month ago we reviewed gold and our conclusion was that the fifth attack on the $1,000/oz level in two years was highly likely to lead to a decisive upside breakout. We looked and saw that a suspected massive short position in gold was likely to lead to an explosive rally, as shorts were forced to cover. We analyzed the weekly chart (below) as well as a daily chart to come up with our target of $1,300 - $1,500/oz.
Keep in mind that targets can be dangerous if we hold to them with an iron fist. The key fact is that gold is in uptrend. A target is merely a device to help formulate a trading plan in the direction of that trend.
Last month we recommended trading gold futures and stocks from the long side and offered several tactical...