I'm sure it's been as exciting and hectic for just about everyone in the gold business as it has been for me these last 6 weeks or so, so I hope no one blames me for not posting recently. Besides that, if I had the advice would be simple: Hold. This is not worth missing the boat over. As Dan Norcini said yesterday at www.jsmineset.com there is an overwhelming enough people who are or are advising clients to wait to jump into gold until it pulls back to 1020, to make me think they will not get it. 1032 will be the best they will get, if they get anything at all.
As I posted a few days ago about the possibility of GSS being bought out most logically by Gold Fields (GFI), there is more going on there than just hoping for a buyout. GSS has exploded from a nearly month long pennant it created on this last run up by gold. In the process it rejected a new high and formed a double top at 3.70. its now consolidating nicely just under that in the mid 3.50's. A breakout is eminent. Although resistance in that area over top is sporadic ranging from 3.83 to 3.93 and finally onto the low 4's, there is much of it, and a big move in gold will blow it out of the 3 region on such a pattern. After such a long way up for gold so far, is there really steam left? Yes. 1050 was a goal that was accomplished and disrespected as gold moved onward to top out at 1060. It's next point is 1080 and onward to 1100. (as I've said over and over, 1200 by the end of the year...doesn't seem so "outlandish" anymore huh)
It's all about the dollar. The US Dollar Index has been playing on the brink of a significant break down from 76. (It almost accomplished this yesterday which would have been disastrous with the 12 billion dollar 30yr bond auction. Why would anyone give the government there money for 30yrs risking a dollar collapse if they can't keep it from collapsing for the next 30 min?) A breach below 76 will spell out a significant move downward for the dollar, possibly to 74 before finding any real support, from a technical perspective. It would also spell out a higher move in gold that Norcini said will take out 1100. (and he usually understates it).
A significant breakout in GSS will happen in less than 2 weeks. (Let's not forget that Buyout possibility) This move can very well send it to 4, so in short its my number one play for the next few trading days and it should be yours too.
That's why I'm all in GSS.
Don't trade your gold, shift. When GSS breaks up we sell and buy something else. Keep your eyes on GG and IAG.
-J
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