Gold has made new multi-year highs this week, seeming because of risk-aversion arising from the European debt crisis. Gold has even managed to strengthen against the USD, meaning its price in other currencies is rising — which presumably points to Eurozone buying of gold. This hypothesis is supported by anecdotal reports of strong German demand for gold coins.

Volume has been low today and the price has messed around in a range. A few minutes ago it broke out of that range on higher volume and I took the chance to enter with a stop below the low for the day. This is in case the market really runs. If it comes back to the breakout level I will be stopped out and will have to enter again. I am planning to tighten the stop at the first opportunity.

The first chart, from IG Index, shows the appox. entry and stop levels. Other charts, from Tradestation, show price and volume.