I am fascinated with what is happening in the gold v euro v dollar market right now. Whatever happened last Thursday has set off some sort of chain reaction to reverse trends that have been holding for quarters on end. Gold and the US dollar reversed down, and the Euro reversed up. I am sure we'll never find out the true story but as we saw last week when one drunk British trader could move oil $2 by himself, if some big fund had a trade gone awry a lot of things can change quickly. I am going to take down my gold position by half until things stop moving so fast, gold has been hammered the past 3 sessions and is now down below its 50 day moving average. (which is about $1212)
(note I am using the gold ETF chart simply because it updates in real time, whereas the gold commodity has a day delay)
Please note a potential double top in this chart (the commodity chart has the exact same pattern) - if true, that's bearish.
I had a 2.5% allocation in Powershares DB Gold Double Long (DGP) which is going down to about 1.2% at a 5% loss. I had some pretty good unrealized gains here just 2 weeks ago.
Long Powershares DB Gold Double Long in fund; no personal position