1. Because the price is going up.- no need to debate why or what will happen. We like strong trends and right now, gold is one of the best performers of the year..
2. Speculators love it. We rarely trade it and we noticed a fanatical following. We were trying to find reasons to dump it and any negative article was viciously attacked by the gold bugs.
3. The charts look great. In commodities, sometimes that is all that matters.
4. We really can't find any place more attractive to put our money.
5. Demand seems to remain strong in China and India and it was oversold last year.
6. Traders are running out of stocks to play in the stock market and the gold market offers a great opportunity if it really starts to run.
What we don't like-
1. Gold traders are fickle and there are some claims of price manipulation.
2. Is this a dead-cat bounce?
3. We are unsure which way interest rates are going.
Not much more to think about here - our stops are in place and if it doesn't run we will just sit in cash for awhile. We have no emotional tie to the trade.
