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Gold ETFs Plunge As “Risk On” Mentality Sweeps The Equities Markets

Published 01/26/2017, 01:14 AM
Updated 05/14/2017, 06:45 AM
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Gold prices closed lower on Wednesday, as the major U.S. stock indexes all hit new all-time highs, including hitting a landmark Dow 20,000 level that’s been the subject of much investor and pundit speculation.

As is typically the case when stocks rally hard, gold prices fell. February Comex gold was trading down $13.60 (-1.2%) on the day, at $1,197.20 per ounce. Year-to-date, gold is still up around 4%.

Enjoy today’s technical analysis of gold courtesy of Kitco:

Technically, February gold futures prices closed nearer the session low. The gold bears now have the overall near-term technical advantage. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,225.00. Bears’ next near-term downside price breakout objective is pushing prices below solid technical support at $1,175.00. First resistance is seen at $1,200.00 and then at today’s high of $1,209.30. First support is seen at today’s low of $1,192.60 and then at $1,187.50. Wyckoff’s Market Rating: 4.0

On the ETF side of things, the SPDR Gold Shares (NYSE:GLD) was trading at $114.04 per share on Wednesday afternoon, down $1.23 (-1.07%). Year-to-date, GLD has gained 4.04%, versus a 2.60% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of B (Buy), and is ranked #3 of 32 ETFs in the Precious Metals ETFs category.

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