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Decision Time

Published 23/01/2017, 04:32 pm
XAU/USD
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GC
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BLK_old
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Originally published by Chamber of Merchants

The Australian miners are having a stellar day today.

While most of the miners have been gaining incrementally, Blackham Resources Ltd (AX:BLK) has made an amazing run up to around 88c so far. That is because today is day #1 of Trump’s presidency. Uncertainty is in the air and investors are nervous. That is great for gold.

I am reminded of election day… and Brexit…. will the risk off situation remain?

It will be revealed in the dollar which is on support (life support?):

Chart

Gold on the other hand is forcing its way up against resistance which will either get rejected or allow it to shoot through to around $1240:

Chart

Keep perspective and manage risk. If you’re happy as can be today, realise that there are cycles and that the market giveth and taketh away. As I said previously, whatever I’ve achieved so far this year, I would like to do it again several times over the next 4 quarters.

If you’re sitting with gains, a good strategy is to convert some to cash in case this 50/50 trade goes against you. If you’re a long term investor, then there is certainly less reason to sell now than there was 6 months ago. It all depends on your strategy.

Think Better. Trade Better.

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