Buy June Gold

I don't believe the medium term outlook for gold is good.
This article matches my feelings exactly: Gold to Resume Decline as Focus Shifts Away from Egypt


The rapid decline in gold prices from the beginning of 2011 stalled in the final week of January, with the metal mounting a meek recovery over the past two weeks. The timing of the rebound aligns with the beginning of the crisis in Egypt, hinting bearish momentum was arrested by geopolitically driven safe-haven demand...With Egyptian President Hosni Mubarak finally bowing to protesters and ceding power to the military on Friday – an outcome that was greeted by the markets with a sharp drop in Egyptian CDS spreads – gold selling is poised to resume...
the most reliable long-term driver of the yellow metal has been the trend in gold ETF holdings, a proxy for overall investment demand. For their part, holdings have been falling precipitously over recent weeks to hit the lowest since June 2010...This seems reasonable: US economic data – the bellwether for the globe at large – has materially improved over recent months, suggesting a backslide into recession is unlikely; meanwhile, the lingering debt crisis in Europe and a looming slowdown in China suggest the move back to pre-crisis prosperity will be a prolonged affair rather than a quick surge higher. On balance, this robs gold of its top bullish catalysts and hints the selloff that began just as ETF holding topped out in late December will resume as the spotlight shifts away from the fiasco in Egypt.
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Right now, gold has basically been going sideways, overall, since the year started. My strong feeling is that there's going to be a big breakout. I'd give odds of 2 to 1 that breakout will be to the downside. If that happens, it'll go through 1300 easily.
I shorted Wednesday midday after noticing the weakness that morning, and while I had the sweats this morning, it worked out reasonably well today. I'm still holding net short.
Since the Egypt thing started, I've handled it by having a larger VAR during periods when I've been long than when I've been short, and that was true right through today. Starting Monday, I'll be reversing that.
 
That all makes sense. I just try and read the intraday candles because there is so much painting of the charts on daily gold charts. It seems the latest power moves have been to the upside and then quickly contained, thats what makes gold gold, totally different monster to trade IMO
 
Im more of a headline reader, meaning I dont really read the full article as to be biased. I found I am better off knowing there is news and letting the market tell me which way to go. Some of my biggest losses are when I have a strong (wrong) opinion on what should happen
 
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