Watch for a breakout
The market is signaling today — on a number of fronts — that some kind of geopolitical trouble is coming. Sure, maybe it’s just another round of jitters but these are real breakouts. Oil is at a three-and-a-half year high, the yield curve has flattened and now gold is on the cusp of breaking out.
The January high was $1366 and we’re just below that now. Watch for stops if it breaks.
I wrote yesterday about buy gold on geopolitical risk. I still think the risks are skewed to the upside because if it gets ugly, there is massive potential to the upside. While the unwind if Trump’s bluffing is going to be slower.