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GOLD Will we close above $1300?

|Includes: SPDR Gold Trust ETF (GLD)

Spot gold broke $1300 this morning and is hovering around $1297-98 currently. People thought I was crazy a the beginning of 2010 when I called spot Gold to be $1300 and potentially $1500 by the end of 2010. Well here we are, and with QE2 on the horizon, and the Fed wanting some inflation created; $1500 now seems to be a very realistic target (think we will see sometime in Dec).

Now for GLD - we are in great profits on our latest trade made just minutes after the FED interest rates announcement. We bought GLD Oct $125 calls @ $1.73 per option and as I am writing they are trading @ $2.92 per option. I have moved my stops up to $125.79 GLD equivalent.

Today I think we have a really good chance to see spot gold close over $1300 today with GLD closing somewhere above $127.00. I'll be monitoring closely and will let you know if I change stops or decide to take profits.

Disclosure: Long Oct $125 GLD calls