Got Gold?

I am getting a lot of questions today as to why I haven’t bought gold (GLD) back. I think this is a good question, given that A) gold is down today and B) gold remains in one of the most obvious bullish quantitative patterns in all of global macro.

The answer is because I am cheap. That’s it – I admit it. I am stingy here on price. I have my buying range (see chart below), and I am sticking to it.

Buy Gold between $807-826/oz, and sell it closer to where we did on 12/29 and $896/oz. This is a very trade-able range, especially suited for the patient trader. We want to own “re-flation” before oil moves up +23% in a week (like it did last week), not after.

Keith R. McCullough
CEO & Chief Investment Officer