Going for Gold!

Gold is now within striking distance of its all time high of 1063, and has broken out, consolidated, and rallied on excellent volume.

If you bought (GLD) and (GDX) on the initial breakout, go ahead and lift your stops to last week's lows (roughly 96.70 and 42.50) and let your money run. You're now sitting on a no-loss position.

The only thing I can see stopping gold's rally at this point is a major flight back into the US dollar. But with the dollar's severe weakness since the liquidity-crisis ended, a long and sustained rally in the dollar is unlikely.

If we do break to new all time highs we'll likely see another nice leg up on this rally, but we'll ultimately come back to test the 1000 level. That will be the point to really load up on your gold positions.