Metals Trader Turn to Technicals as Fundamentals Remain Cloudy (GLD) (SLV)

November 19, 2012 3:15 PM EST
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SPDR Gold Shares ETF (NYSE: GLD) gained 1.25 percent intra-day on Monday as spot gold tapped $1730 per ounce.

After a decent rally this summer, gold came under pressure after being rejected at $1800 per ounce, declining to lows near $1675 leading up to the presidential election in the U.S. Since then, prices have launched a modest recovery, though traders have noted modest resistance ahead of $1750.

Today's rally is being pinned to fraying tensions in the Middle East. Gold is also getting boosted by declines in the U.S. dollar index, which came under pressure as jittery European investors found comfort in another Greek bailout.

Looking forward, traders say gold is likely to trade on technicals as fundamentals remains cloudy due to fiscal-cliff and geopolitical concerns.

Like GLD, iShares Silver Trust (NYSE: SLV) posted strong gains on Monday, gaining 2.75 percent as the spot price of silver pierced $33 per ounce, its highest level since mid-October.

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