Despite Bounce, Analyst Sees More Downside in Gold (GLD) (IAU) (SLV)

December 21, 2012 9:59 AM EST
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Spot gold and SPDR Gold Shares ETF (NYSE: GLD) traded slightly higher early on Friday, as equity market broke down following republican's 'Plan B' failure.

Despite the bounce, analysts at Susquehanna see more downside in the precious metal. They are recommending investors take advantage of low implied volatility and buy SPDR Gold Trust (GLD) March $155 puts, which they view as having good risk/reward.

Since Monday, spot prices have declined $50 and now trade at $1650 per ounce. GLD and iShares Gold Trust ETF (NYSE: IAU) are lower by 2.65 percent over the same period and iShares Silver Trust (NYSE: SLV) declined 7 percent.

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