Gold takes out 200 Day Moving Average. Front month Gold Options continue to provide good risk return for directional traders.

On January 20th I wrote the following:

The last week or so has shown that a down stock market does not necessarily mean higher gold. Today the February gold futures contract made a high of $1109.9. That is lower than the 1113.1 high that gold made on January 7th. Stocks made a new low today with the S&P making a low of 1804; on January 7th the low in the S&P was around 1930. So 125 handles lower in the S&P later, gold did not make a higher high.”

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