Gold Chart Breaks Out

GLD (gold ETF) rose 2.4% last night, breaking out of a symmetrical triangle formation. There is still some resistance though at about $99. For now, the move is tradeable. It is however arguable if this is a reflation trade or a safe haven/the-us-dollar-will-go-to-the-dogs-even-more trade. I'd like to highlight that gold has been more of a hedging instrument rather than an investment for most fund managers. We're also seeing the VIX moving up, another sign of some hedging coming into play in the market. So the move up in gold may be hedging more than anything. Let's listen to the market and see where this goes.