Gold may or may not be a currency or hedge against crisis but it has been traded for thousands of years. That being the case, gold can probably be expected to fluctuate in value but it’s not going to disappear. At least not in a straight line.
Jeff Kilburg, founder & CEO of KKM Financial, is a gold trader rather than a fundamental purist. For him the underlying demand gives him a trading backstop, but getting ahead of price fluctuations are how he brings home the bacon.
Kilburg says the trader in him thinks gold is on the cusp of a breakout. “I want to see it get back above $1,500, but I think you can layer into gold positions here,” says Kilburg.
Why wait? Because good commodity traders know to respect the technicals. $1,500 is a level from which gold broke down. Those who bought that level and rode gold to the lows and back the mid-$1,400s are weak holders likely to breath a sigh of relief and bail when they get back to their cost basis. Traders who bought lower will see resistance at $1,500 and take profits. Either way Kilburg says it pays to wait.
Read entire article at: http://etfdailynews.com/2013/04/29/gold-on-the-cusp-of-a-breakout/
April 29th, 2013 – ETF Daily News