Buying GLD call contracts.

As bond yields start to pull back, the U.S. dollar is rolling over (in comparison with other international currencies).

A weak dollar should propel gold prices higher.

Historically, gold has been an effective hedge against inflation. But during our current inflationary period, gold has failed to move higher.

A large part of this weakness is due to the strength of the U.S. dollar.

But if the dollar rolls over, gold should once again move higher in response to today’s red-hot inflation.

The SPDR Gold Trust (GLD) trades in-line with the price of gold.

Today, we’ll buy December call contracts which give us plenty of time for this trade to play out — and a good amount of leverage to the underlying price of gold.

• Buy (to open) 12 GLD December 16th $147 Calls
• Limit $9.90 or less
• The new position will represent roughly 9.4% of our Spec Model capital

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• Executed 11:53
• BOT 12 GLD Dec 16 $147 Calls @ $9.51