It's my Gold Rush!

I've been bullish on gold for over a month now! What a rush!

Ever since the gold price pushed to test the support level at around $915 little over 6 week's ago I was bullish. The upside target on the gold chart is $1250!

Now from the small pull back from $1024 level to $990 again the gold price has shot up to a record of $1050 since Monday. The gold index in South Africa has skyrocketed almost 10%!

What's the reason? Some of the reason is due to the dollar weakness in the global economy as inflation takes it's toll. But also there has been a debate about the price of oil being derived from a basket of commodities rather than the dollar alone.

Guess which commodity is being considered as part of the basket of assets to price oil in future?

You got it! It's GOLD!

The Australian FED bank also increased interest rates as the first bank to start doing so as the global economy shows signs of ticking up. The combination of all these things has pushed the gold price to break records!

The medium term outlook on gold is to target $1250. We will have various waves of upswing followed by profit taking before we get there.

Be prepared to ride the waves and walk away with reasonable trading profits! Don't be greedy!

I've moved my stop loss levels to entry now. Looking to close half of my positions on the stock market in the resources sectors.

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