Exited my Gold Position

In this previous post, I reported that Gold was overbought and that I had a position where I would benefit from a fall in gold prices.

Here is an update on my risk and reward estimate.  I have exited the position since the price has dropped about $6.50 based on GLD and about $65.00 on the spot price.  My initial target was a support of $108 for GLD or about $1,080 for the spot price.  At this time I am not ready to risk about $6.50 in profit to wait for another $3 or $4 to develop.

I expect prices to fluctuate for the next two weeks in the range of $108 and $113.  I would not be a buyer at this time unless it fell below $108.