As we look back at the action in Gold last week, we saw a market that was consolidating. There was the shakeout of the weak hands who trade off their opinions instead of what we preach everyday the market footprint. In other words, we saw many dump their gold positions when they should have been holding and buying the dips.

After opening lower in the overnight session, gold has had another dramatic turnaround and is making new 6-year highs on its way to 1500. There will be sell offs before we get there, but the pattern and footprints suggest there is room to go higher and test our next target of 1500.

Remember trading anything isn’t easy but if you follow the charts and stay away from news and opinions you are putting the probabilities in your favor. You won’t always be right and its certainly not easy, but one thing we know for sure, the patterns don’t lie, and all markets are determined by price and nothing else. 1500, here we come.

Todd Horwitz
Chief Strategist