Commodity ETF Alert February 2014 Issue

 

Commodity Outlook:  Gold

Well folks, it has been a long time coming…

After a year of extreme bearish uncertainty, gold is finally showing signs of a long-term bottom.  Increasingly bullish supply/demand fundamentals, along with recent sentiment changes, have the gold market sniffing out consistently higher prices.

In fact, the yellow metal is up 7.3% on the year. And that’s in spite of the fact the Federal Reserve is accelerating their highly anticipated tapering program.

That’s right, even though former Fed Chairman Ben Bernanke recently announced an additional $10 billion drawdown in US economic stimulus, gold is trading at multi-month highs.

Take a look…

And listen to this…

Newly minted Federal Reserve Chairman Janet Yellen went before Congress today.  In her highly anticipated testimony, she revealed that even though the last two US jobs reports were incredibly weak, the Fed will likely continue with their tapering program in 2014.

And guess what…

Gold is rallying strongly on what would have previously been perceived as bearish news.

As a matter of fact, the yellow metal is up $15 today, pushing $1,290 an ounce!

Friends, this is further proof sentiment towards gold is changing… and quickly.

Remember, it wasn’t long ago the yellow metal was trading at $1,200 and investors feared additional downside.  But with the recent changes to sentiment, along with important supply/demand factors, gold all of a sudden has hefty upside potential.

Now listen closely…

This is just the tip of the iceberg for our discussion on gold.  I’ll give you plenty of additional details on why now is the perfect time to add gold to your long-term commodity investment portfolio in our upcoming monthly trade update.

For the time being, just focus on getting into the iShares COMEX Gold Trust (IAU) at any price under $12.60 per share.  As loyal readers are aware, IAU is one of the most cost effective ways to get long the gold market.

Technically Speaking:

As you can see, IAU is just starting to break above a long-standing technical downtrend line (blue line).  With this important technical hurdle broken, the odds of higher prices are greatly increased!

WHAT TO DO NOW:

iShares COMEX Gold Trust (IAU) is trading at $12.52
Buy IAU up to $12.60 per share
Our profit target is $16.00 or more

 

Category: Commodity Trading