Gold still glitters
This morning I added PowerShares DB Gold Fund (DGP) to the Barchart Van Meerten New High portfolio purely for technical reasons. The ETF is based on the Deutsche Bank Liquid Commodity Index - Optimum Yield Gold Excess Return and managed by DB Commodity Services LLC. The Index is a rules-based index composed of futures contracts on gold and is intended to reflect the performance of gold. Again this is purely for technical reasons. The points I considered are:
1 - 14 new highs in the last 20 trading sessions including 4 of the last 5
2 - Price appreciation of 11.41% in the last month
3 - 88% Barchart technical buy signal - 11 of the 13 indicators are a buy
4 - 14 day Relative Strength Index is 66.68% and rising
Jim Van Meerten is an investor who writes on investing here and on Barchart Portfolio Blogs. Please leave a comment below or email JimVanMeerten@gmail.com.
Disclosure: No positions in the stock mentioned at the time of publication