Gold ETF (GLD) Seen Lower as Spot Gold Breaks below $1600
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SPDR Gold Trust ETF (NYSE: GLD) is expected to open lower as gold prices dropped below support levels at $1600/oz. Sentiment about GLD is mixed and recent volatility in the commodity is likely to continue in the short term. Gold, which is often viewed as a safe-haven, is losing out against the other preferred safe-haven, the U.S. dollar.
SPDR Gold Trust is also suffering because of decreased gold demand from consumers in India. Physical gold buyers there have been sidelined as the exchange rate for the rupee fell to a record low against the dollar recently, keeping local gold prices high.
On a technical basis, traders say spot gold looks like it will test range lows in the $1550 to $1530 area, but many expect sideways trading on a medium term basis. SPDR Gold Trust ETF traded slightly lower on Wednesday, finishing the day at 155.97. The other gold ETF, iShares Gold Trust (NYSE: IAU) finished the day at 15.65.
SPDR Gold Trust is also suffering because of decreased gold demand from consumers in India. Physical gold buyers there have been sidelined as the exchange rate for the rupee fell to a record low against the dollar recently, keeping local gold prices high.
On a technical basis, traders say spot gold looks like it will test range lows in the $1550 to $1530 area, but many expect sideways trading on a medium term basis. SPDR Gold Trust ETF traded slightly lower on Wednesday, finishing the day at 155.97. The other gold ETF, iShares Gold Trust (NYSE: IAU) finished the day at 15.65.
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