With oil on the move too, gold might not be far behind!

Oil made another run at $100 a barrel on Tuesday, after news surfaced of an explosion at a 67,000 barrel-a-day refinery in Texas. What’s more many feel OPEC will cut production in March, something that could drive the price even higher. Adding icing to the cake, Nigeria remains an issue, while U.S. and Venezuela remain tense. All of the aforementioned is causing fear within the market, and played a significant part in gold’s bullish move on Tuesday.

Specifically, gold popped above descending resistance of recent consolidation, an event that has technical buyers seeking a continued move higher. Moreover, gold has been consolidating since hitting a high of $942.20 a troy ounce in January, which now serves as resistance for the precious metal.

Until the smoke clears in oil markets and on the geo-political front, shorting gold and/or gold-related stocks here, would probably be a risky proposition, at best.

Exit is everything.

2/20/08