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Today, we’re opening a new bullish trade on the SPDR Gold Trust ETF (NYSEARCA:GLD).

After flirting with yields above 3%, the 10-year bond is starting to cool off. Traders are likely to use this as an excuse to call a top in the dollar as well. Both a weakening dollar and flatter yields in the short term should be good for gold.

We like GLD calls at this level as prices meet support near $124 per share. Our initial target is the top of the current channel near $128. A breakout to a higher high is possible, but we think a more conservative approach is best in this market.

The options are relatively cheap currently (low implied volatility), so we don’t need as much upside to make a profit.

‘Buy to open’ the GLD June 125 Call (GLD180615C00125000) for a maximum price of $2.10.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.