SPDR Gold Trust (GLD) Gaps Down for Second Session; All But Erases Gains for FY12
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SPDR Gold Trust (NYSE: GLD) has gapped-down for the second straight session on continued worries in Europe.
The recent elections in France and Greece, as well as with Spanish banks, have investors convinced that demand for gold in Europe has slowed to a trickle.
Investors are putting money in German bunds and U.S. dollars. Investment in the U.S. dollar also has a double-impact on gold: money is being shifted away from the metal and contracts become more expensive to investors outside the U.S.
Also of note, gold has just about wiped-out any gains in 2012. From being up as much as 14 percent in February, gold is now just over 1 percent higher for the year.
Implied volatility on the gold ETF is up 10.5 percent from Tuesday's close and 125.5 percent over its average for the last year. The gold ETF is down about 1.5 percent on the session.
The recent elections in France and Greece, as well as with Spanish banks, have investors convinced that demand for gold in Europe has slowed to a trickle.
Investors are putting money in German bunds and U.S. dollars. Investment in the U.S. dollar also has a double-impact on gold: money is being shifted away from the metal and contracts become more expensive to investors outside the U.S.
Also of note, gold has just about wiped-out any gains in 2012. From being up as much as 14 percent in February, gold is now just over 1 percent higher for the year.
Implied volatility on the gold ETF is up 10.5 percent from Tuesday's close and 125.5 percent over its average for the last year. The gold ETF is down about 1.5 percent on the session.
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