market folly

The guys at MarketClub have been all over the move in gold and initially outlined a price target of $1,110 for the precious metal. Well that target was hit a few days ago and in their latest gold technical analysis video they see gold 'flattening out' a little bit as it could likely consolidate and trade sideways for a while before continuing its trend higher.

They note that it's always prudent to lock in some gains and protect them by using stops. If you're a longer term player in the metal, you can use more flexible stops and they suggest placing one below the most recent low at around $1,030 or so. If you're playing this as more of a shorter-term trade, then you'll obviously want to lock in your profit quicker with a more conservative stop right around $1,095 or so. Watch the video to see what they say about placing stops in gold.

They also highlight that you should move stops up as the market heads higher to continue to lock in gains. The pattern in gold that built up over multiple months is a powerful base that could propel the precious metal to their price target of around $1,250-1,300. If you're not playing the metal directly, keep in mind you can play the popular exchange traded fund GLD. Hedge fund manager David Einhorn of Greenlight Capital prefers storing physical gold, while John Paulson's fund Paulson & Co has bought $4.3 billion worth of gold investments. Either way, the guys at Market Club see gold cooling off for a bit here before setting up for another run higher.