Thursday, August 27, 2009

Quick Look at Gold: Compressed Trading Range

Gold (GLD; daily chart above) has shown quite the compressed trading range since the early 2009 stock lows, frustrating bulls and bears alike. It's on my longer-term watchlist as a breakout candidate, particularly if we continue to sustain weakness in USD. As a surrogate currency and possible beneficiary of a reflationary/inflationary outlook, gold could become quite a story on a break above $1000/oz.