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Gold Momenum Picking Up Again

|Includes: Randgold Resources Limited (GOLD)

As I noted previously, I exited gold between $1060 and $1080 USD per ounce, exiting in portions. Now, I plan to start getting back in in to my full size position.


   

Above is a daily chart of gold. MACD shows a crossover just as we start to get the recent rallies in gold. The exponential moving averages are starting to make bullish crossovers as well. The hammer at $1040 stands out as a strong support level. I'd like to see price pullback a bit more to support, though I will begin to scale in any event, as I'd prefer to have gold as my base currency as much as possible, as price permits.

In terms of managing the position, I am bullish on gold for the long haul, and think we will steadily march to new highs. I gold to be the primary beneficiary of the global sovereign debt crisis. Gold's performance against the Euro this year, which has suffered due to the sovereign debt issues in Greece, Spain, Italy, and other European countries, supports that viewpoint.

With that in mind, my plan for gold is to keep it very simple; I'll use MACD as a guiding light to find entry and exit points.

Disclosure: Long gold.