Golden days

Gold 140911

I jumped ship on my US shorts as soon as the market opened. It was a lucky break for the market powered ahead towards the top of the channel and I came away with a bit of profit. In hindsight I should have given up a day earlier. I was less lucky with my silver. I went back in modestly as the price strengthened during the evening.  Only to pull back this morning. No profit there but no big black hole either.
A reader has asked for a view on gold so here goes. It's a tricky one.
The main problem is that gold has run up fast and is a long way from the 200 day moving average (thick red line). That line will act as a magnate and pull the price back towards it, or slow down price action so it can catch up. The price action is only about 2% away from the support line I've drawn (blue line) so we will know more when that support holds or not. The price has definitely lost momentum and there is what looks like a possible double top (not a good sign). On the plus side is the fact that the bull market has got legs and has weathered pull backs like this many times before. Also there is the likelihood of a major negative financial event any day and that should give gold a lift.
For what it's worth I'm hanging in there with a chunky part of my investment. I could change my mind at any time and there are people out there saying gold is in for a substantial pull back. Watch that support line!

For what its worth I'm hanging in there till the charts tell me not to.