Gold Support Holds Up at $1550/oz. (GLD)
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Spot gold and SPDR Gold Trust ETF (NYSE: GLD) are both being put to the test today, with the spot price pressing support at $1550. So far, support seems to be holding and the price is currently coming off of the lows and is now back near $1567 per once.
Gold prices have been trending lower all week. In part, the move lower is related to increasing strength in the U.S. dollar, which is posting 2 year highs today. Strength in the dollar came as yields on U.S. treasuries traded near record lows and QE3 from the Fed is on extended hold. Continued difficulties in Europe and rate cuts in several emerging market countries overnight are seen as supportive of the dollar, which has replaced GLD as the safe-haven trade this year.
SPDR Gold Shares (NYSE: GLD) is lower by 3.25 percent in the past 30 days, but price action this month has been anything but one sided, with price swings occurring in both directions.
A close below $1550 today could point to more near term selling in gold.
On the other hand, a significantly higher close might point to choppy price action, say traders.
Gold prices have been trending lower all week. In part, the move lower is related to increasing strength in the U.S. dollar, which is posting 2 year highs today. Strength in the dollar came as yields on U.S. treasuries traded near record lows and QE3 from the Fed is on extended hold. Continued difficulties in Europe and rate cuts in several emerging market countries overnight are seen as supportive of the dollar, which has replaced GLD as the safe-haven trade this year.
SPDR Gold Shares (NYSE: GLD) is lower by 3.25 percent in the past 30 days, but price action this month has been anything but one sided, with price swings occurring in both directions.
A close below $1550 today could point to more near term selling in gold.
On the other hand, a significantly higher close might point to choppy price action, say traders.
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