Yellow Fellow

I've been in my mind
It's such a fine line
That keeps me searching for a heart of gold
And I'm getting old
--Neil Young

Gold continues to hover near all time highs. Technically, a picture perfect multiyear reverse head and shoulders pattern is evident. This is bullish.

From a macro perspective, the Fed has been jacking money supply and government stimulus programs keep piling on the debt. This inflationary activity should be bullish for gold as well.

But try as I might I'm not enthused with the price action here. It 'feels' to me that we may be headed for one of those 'down 50+' days in the near future.

I'm not playing it either way, as I sold all paper gold exposure months ago. My bullion holdings aren't tradeable, so they'll provide some comfort if I'm wrong and gold screams higher.

position in gold