As the Dow is trying to close at a new high, it looks like Gold wants to tuck tail and run.

As I feared, it looks like Gold is going to take a stab at the support in the $560 range… today it is off over 3.5% or $22 and is trading at $581 (December basis). Gold Stocks (HUI) are off by over 6% right now. Normally a market would gradually grind its way down over several days or even weeks, but apparently Gold is in a hurry to go down.

It looks like my last post on the topic was a little early, even though I did lay out the possibility of this drop. My advice stays the same as before…

I should also mention that although gold stocks make up a very small portion of my portfolio (less than 10%) they are responsible for over 90% of the daily volatility across the entire portfolio. They are also responsible for most of the profits, so the volatility is not in vain… but it can be stomach churning if you’re not prepared for it.