Investing.com - Financial Markets Worldwide

How Low Can The SPDR Gold ETF Go?

Published 03/07/2013, 01:43 AM
Updated 07/09/2023, 06:31 AM
GC
-0.10%
GLD
-0.09%

Shares of SPDR Gold Shares (GLD) have declined precipitously since the August-September 2012 rally that fell apart just short of $175 a share.

GLD is a widely traded ETF that follows the price of gold bullion. Shares are extremely volatile but if you get the trend right, they can also be extremely profitable.

The summer rally was, we thought, going to be short lived. It was. GLD turned right at predicted resistance and plummeted. It has not stopped dropping since.

GLD
There is a bottom for every decline just as there is a top for every rally. The trick is to be with the trend whichever way it is headed, and not try to guess the reversal point.

But for the sake of those who like trying to do so, we will peg the bottom of this decline around the $145.00 level.

With share prices holding just above the $150 level which acted as support back in June, 2012, we are looking for one more break lower, and then a quick selloff to the $145 level.

If we get a bullish reversal pattern near the $150.00 level, it may also signal a bottom. This of course is where the risk comes in.

After reversing to the upside, it remains to be seen how much of a rally can be mounted by bullish traders.

Disclosure: Author does not have a position in the SPDR Gold Shares ETF.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.