My intraday gold proxy is Sprott’s Physical Gold Trust PHYS and it shows the strength gold is exhibiting today. It was my hope yesterday that we would see follow through today as gold throws off the weak hands and flows to the strong. The West sells and the East buys. The paper traders play with nominal gain, including the paper gold longs. They cannot make those nominal gains real until they trade that paper for physical gold. So paper gold traders, you have been handed another favorable chart setup to take the short’s paper. Take it and profit well. Remember, profit isn’t a profit until you sell and it isn’t real until you invest in physical gold.
PHYS is a good way to paper trade gold without leverage. GLD is also another way that is not leveraged, and can be used to leverage gold through options. I refuse to chart GLD because it is a criminal enterprise designed to manufacture paper gold and dilute the value of real gold. It was established to absorb demand for gold and relieve demand pressure for physical gold. So apply the shape of this chart to the spot gold chart and I will post an updated spot gold chart after the close.
The swing low of yesterday is now is confirmed