GLD Ramping Higher but Prospects Mixed
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SPDR Gold Trust (NYSE: GLD) in New York said its holdings rose just over 3 tonnes on Thursday, their biggest one-day increase since June 1. The price of GLD is clawing higher, nearing key levels as the spot price of gold closes in on $1625.
In early June, GLD sold off dropping to a low of $1554 after being rejected at $1640. The early June selloff was tied to relatively hawkish comments by Fed officials. Sentiment has clearly changed in the last week as global central banks now appear ready to fire another salvo, particularly if problems in Europe continue to escalate.
If gold breaks out, bulls are targeting 1675, but traders say they are taking a caution stance on gold pending the results from elections in Greece. A worse case scenario would not necessarily be supportive of gold, since it could force investors around the world to scoop up dollars instead of gold. On the other side, a positive outcome could decrease the chances of QE and might also cause gold to fall. In short, GLD is likely to have multiple personally disorder ahead of the elections and see choppy movements immediately afterward.
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In early June, GLD sold off dropping to a low of $1554 after being rejected at $1640. The early June selloff was tied to relatively hawkish comments by Fed officials. Sentiment has clearly changed in the last week as global central banks now appear ready to fire another salvo, particularly if problems in Europe continue to escalate.
If gold breaks out, bulls are targeting 1675, but traders say they are taking a caution stance on gold pending the results from elections in Greece. A worse case scenario would not necessarily be supportive of gold, since it could force investors around the world to scoop up dollars instead of gold. On the other side, a positive outcome could decrease the chances of QE and might also cause gold to fall. In short, GLD is likely to have multiple personally disorder ahead of the elections and see choppy movements immediately afterward.
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