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The gold markets pulled back slightly during the Monday session as the shooting star from Friday triggered selling. Nonetheless, we think that this market simply needs a bit of rest before the next move higher. We see quite a bit of support in the area just below, especially the $1740 area.
The breakout has been rather strong, and we suggest that this market will continue to go higher. Any pullback of significance will simply give you an opportunity to buy gold at a better price. We are buying pullbacks, and we are doing it through both futures and the GLD ETF. The advantage of using the GLD is that it can be traded as a long-term investment. Futures are a bit too volatile and expensive to do that at times. Obviously, physical gold is a good investment as well, if you can afford to do so.