July 23, 2015

Was right selling Gold in May

I had a "protection policy" of holding gold through the SPDR Gold Shares ETF (GLD) back in February, but sold this hedge in May at about $116.50.

Well, GLD is trading this morning at around $110.75.

I got a lot of pushback on my gold sale back in May (principally from technicians), but I feel comfortable with my fundamental decision.

Gold has moved irregularly lower since my sale (it's now under $1,200 an ounce) -- and if I were still long on GLD, I'd have had no clue what to do here on the metal's weakness. In my mind, that confirms my decision to sell in May.