Investors should always have 10% to 20% of their holdings in some sort of precious metals holding. Comex gold is just one of several choices from a gold-based exchange-traded fund, or specific gold mining stock, of basket of stocks.
Comex gold has been tracking its 200-week simple moving average or ‘reversion to the mean’ since the week of June 17, 2016 when gold futures traded at $1,312.3. The weekly chart is positive with gold above its five-week modified moving average of $1,289.8 and above its 200-week simple moving average of $1,232.4. The 12x3x3 weekly slow stochastic rose to 51.86 last week, up from 35.88 on Dec. 29.
Trading Strategy: Buy weakness to my weekly, monthly and semiannual value levels of $1,302.8, $1,298.4 and $1,258.1, respectively, and reduce holdings on strength to my quarterly and annual risky levels of $1,477.2 and $1,539.8, respectively.