Is Gold Setting Up For A Breakout? | IBD Live

TL;DR

Gold shows signs of a potential breakout, with strong buying volume and resistance to a strong dollar.

Transcript

[Applause] George I uh believe you know given our pre-show chat you are in Golds how going I did buy it I you guys were talking about it on the show and I was Heming and haing and and the show's talking about well it's straight up from the bottom uh but I looked at the chart and I saw right when it Formed that bottom I was looking at it there and I... Read More

Key Insights

• 💲 Gold's recent performance shows signs of a potential breakout, with buying volume increasing off the bottom and resistance to a strong dollar.
• 🏅 Other gold-related investments, such as gold miners, have also seen significant gains, indicating a broader positive trend for gold.
• 💦 Picking gold off the bottom seems to work better than relying on breakouts, which can be unpredictable.
• 🧘 The speaker highlights the importance of position sizing and risk management when trading commodities like gold.
• 🏅 The speaker chose to invest in the GLD (gold ETF) instead of gold miners to mitigate the risk of large overnight price movements.

Questions & Answers

Q: What made the speaker decide to buy gold even though it was a risky point?

The speaker observed signs of exhaustion from sellers and saw a potential breakout in the chart, prompting them to take the risk.

Q: Why is gold's performance in relation to the strong dollar significant?

Typically, when the dollar is strong, commodities like gold should be going down. However, gold's resistance to the strong dollar suggests a potential breakout.

Q: Are there any other gold investments that have been performing well?

Yes, the speaker mentions a gold miner called GFI that has experienced a 40% increase in value in just two weeks, indicating potential gains for gold as well.

Q: Is this the first time gold has shown signs of a breakout?

No, gold has had a few false moves in the past, but the current conditions, with global strife and an interesting monthly chart, make a breakout more likely.

Summary & Key Takeaways

• The speaker bought gold at a risky buy point above 180, after noticing exhaustion from sellers and the start of an upward trend.

• Gold seems to be defying the traditional relationship with a strong dollar, suggesting a potential breakout.

• Other gold-related investments, such as gold miners, have also seen significant gains, indicating possible upside for gold.