Having been at this for 40 years, I always look for anomalies. It's very strange to me that, since June, as went gold so went the bond market.
It doesn't make any sense to me. If you go back over the course of the past many years, they move in contravention.
You don't want to risk much on this trade. I can see gold breaking up to the upside and I can see the bond market breaking down to the downside. You don't need to risk more than one or two percent.
If it starts to work [and] this anomaly of moving in tandem starts to break apart...you could see the gold market move $40 or $50 higher, and you could see the Treasuries note move three or four [basis] points lower.