Gold Trust ETF (GLD) Looking to Rally

May 18, 2009 4:16pm NYSE:GLD

goldGold – it is the yellow precious metal once used as a primary form of currency for thousands of years. It is durable, liquid and almost indestructible. Historically, investors have fled unstable markets in search of reliable sources of value and stability, which can generally be achieved by investing in this precious metal. For those who want cost efficient access to the gold market, investing in the SPDR Gold Trust Exchange Traded Fund (GLD) is one of the easiest means of doing so. It is the world’s largest gold-backed ETF that offers risk takers a chance to profit by establishing a position in an investment vehicle that has somewhat of an inverse relationship to the equity markets..


My role here today is to analyze the recent movements of GLD and offer my own insights as to what I believe will happen next with regards to price activity. In the chart below, I’ve drawn a thick horizontal line.

 

This represents major resistance. The psychological barrier near $100 should come as no surprise seeing that investors gravitate to price figures ending in either “0” or “5”. At any rate, this wall has been tested quite a few times. Instead of tripping over themselves in full retreat, the bulls gave ground to affirm the previous breakout neat $70 and bounced back to test $100/share once more.

Full Story:  http://www.nasdaq.com/newscontent/20090518/gold_trust_etf_gld_looking_to_rally.aspx?storyid=20090518194342equit


Read Next


Recommended for You

Partner Center


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

ETF Screener

Find the perfect ETF for you with our screener. Search by asset class, country, and much more.

Go to ETF Screener

ETF News

We cover all the relevant news regarding the ETF industry, including new issues, big gainers, and more.

View All ETF News