Gold Rebounds But For The Retail Investor The Trade All Depends on Your Time Frame

Equity markets continue to trade very choppy, while commodities have seen a rebound over the past week. From the trading floor of the NYMEX, Paul Sacks of Aurum Options Strategies tells TheStreet’s Jill Malandrino the shift has been in sentiment. Recently the correlation has been strong, as the S&P 500 goes down, gold has been moving up, essentially being used for one of its traditional uses, a safe haven. Sacks reminds investors that the more prevailing theme in gold has been the strength of the U.S. dollar, and with the currency coming off a bit, the recent bounce from the 1180 level could be a very reasonable floor. With respect to the day-to-day volatility in the equity market, if that trend continues, Sacks expects to see near-term strength in gold, but the real focus is on the dollar. As for retail investors, now is a reasonable point to look at gold for a longer-term investment, but more short-term, Sacks says you really have to watch it closely and think about it within the entire context of your portfolio.