Consider taking profits on GLD tranche from yesterday right here at $166.22.
Still maintaining 25% of the full core position size as a short.
In view of the fact that momo crowd sold gold on hard data showing that inflation is heating up, trading gold and silver have become treacherous.
Core Producer Price Index rose 0.4% compared to consensus of 0.2%. As our long time subscribers know, we focus on leading indicators as opposed to coincident and lagging indicators. Core PPI is one of our important leading indicators to keep us on the right side of inflation.
True to the behavior seen in the recent weeks, momo crowd aggressively sold gold and silver on the news that inflation was heating up. Momo crowd has created a very dangerous trading environment in gold and silver. Their behavior continues to be contrary to the conventional role of gold of providing a hedge against inflation and bad news.
