Gold ETF Liquidation Could Decelerate (GLD) (IAU) (SLV)
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Up: 14 | Down: 11 | New: 17
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 11 | New: 17
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Liquidation of gold and SPDR Gold Shares ETF (GLD) is winding down, in the view of analyst Xiao Fu of Deutsche Bank.
Commenting, Fu said, "Liquidation in gold ETFs, specifically the SPDR, could begin to decelerate. Holdings in the SPDR have declined by 25% or c.11moz, while we expect that another couple of million ounces could bleed out of the ETF over the next couple of weeks, we believe that this process is largely over in our view."
Fu warned of a potential short covering rally above $1420 per ounce.
"We expect that gold could continue to move higher in the near-term, if prices successfully move beyond USD1,420/oz further short-covering could be possible, taking prices to a more significant resistance level, around USD1,430/oz," he said.
Gold ended the week near $1390 per ounce. SPDR Gold Shares ETF (NYSE: GLD) ended the day lower by 1.5%, virtually flat for the week.
Year-to-date GLD is lower by 16%. iShares Gold Trust ETF (NYSE: IAU) is lower by a similar amount. iShares Silver Trust ETF (NYSE: SLV) declined 26% year-to-date.
Commenting, Fu said, "Liquidation in gold ETFs, specifically the SPDR, could begin to decelerate. Holdings in the SPDR have declined by 25% or c.11moz, while we expect that another couple of million ounces could bleed out of the ETF over the next couple of weeks, we believe that this process is largely over in our view."
Fu warned of a potential short covering rally above $1420 per ounce.
"We expect that gold could continue to move higher in the near-term, if prices successfully move beyond USD1,420/oz further short-covering could be possible, taking prices to a more significant resistance level, around USD1,430/oz," he said.
Gold ended the week near $1390 per ounce. SPDR Gold Shares ETF (NYSE: GLD) ended the day lower by 1.5%, virtually flat for the week.
Year-to-date GLD is lower by 16%. iShares Gold Trust ETF (NYSE: IAU) is lower by a similar amount. iShares Silver Trust ETF (NYSE: SLV) declined 26% year-to-date.
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