Is gold finally breaking out??? Two higher closes over $1,357 in the April contract would confirm it. April futures are currently going for $1,365, putting our bullish call option positions “in-the-money.” March is typically a poor month for the yellow metal but 2014 hasn’t been a typical year. Could there be a Saint Patrick’s Day pot of gold over the rainbow? Are we there yet? The next few days will tell the tale. Gold has a history of breaking bullish hearts, so it wouldn’t surprise us if this “breakout” becomes a “fakeout.” However, something tells us this one may be for real. Two solid closes above $1,357 in the April contract mean gold could be on its way to our $1,450 upside objective in fairly short order.
RMB trading customers should contact their broker directly for further specifics on this trade. If you are not an RMB Trading Customer and want to know more about how we are playing this or other market, contact us or give us a call at 800-345-7026 (toll free) or 312-373-4970 (direct) and we’d be happy to go over a fixed risk strategy with you. You can also e-mail suertusen@rmbgroup.com. Put “gold” in the subject line.