Trade of the Day: SPDR Gold Trust (ETF) (NYSEARCA:GLD)

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I believe the market will experience another pullback. This outlook is contrary to my indicators, which are bullish at the moment, but we’ve seen a pretty strong rally over the past few days, and something tells me that it’s more of a “dead-cat bounce” than anything else.

With so much uncertainty out there, investors are looking for stable returns because interest rates are falling and banks certainly have little to offer. As such, one bright spot (so to speak) is the precious metals.

Gold could continue to rise further in the short term, as it appears to be in the process of breaking out. Silver has also been doing very well and should continue to benefit from the flight-to-safety theme.

Today’s recommendation positions us to profit from this bullish action in precious metals:

Buy to open the SPDR Gold Trust (ETF) (NYSEARCA:GLD) Aug 132 Calls (GLD160819C00132000) at $1.50 or lower. This is the monthly option that expires on Friday, Aug. 19, 2016.

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