Gold Still Moving Higher

Today we had another big up day in gold so I took some profits on about a third of my long position. Just yesterday I mentioned I will scale out into up moves. Gold was up close to $9.00 today, so let the scaling begin.

Notice in the above chart how the GLD's rallied to a resistance level. This is where I exited a third of my position. I'm still looking for a test of the May high so I'll try to hold the rest..

If you look at the lower chart you will see the U.S. dollar. Notice how gold has been moving higher while the dollar has been in a trading range. Usually for gold to rally you would expect to see a falling dollar but gold appears to be moving higher based on it's own fundamentals and not currency fluctuations. I think if the dollar can begin to turn down, we could see an accelerated move to the upside in gold.