Are Gold ETFs In Trouble? (GLD, IAU)
Gold hit a twelve-week low on Tuesday as a rise in stock markets after well-received U.S. data dented the metal’s haven appeal, with a dip in holdings of the largest gold exchange-traded fund also undermining sentiment. L.A. Little, RealMoney columnist, says he sees a troubling trend for gold ETFs. L.A. feels that if gold breaks the current support levels, it will fall to $1050 pretty fast.
“I don’t think gold is going to do as well as it did when all the worries were there in terms of what Greece was going to do, what Spain was going to do,” said Standard Bank analyst Walter de Wet. “It is unlikely it will see the massive ETF rises we did in May. Technically, when we drop below $1,185 gold is starting to look pretty bearish, which from an investment perspective makes people pretty wary of putting on long positions.”
SPDR Gold Shares (GLD), lost 12.17 tons last week as investors sold gold for stocks.
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Related ETFs:
iShares COMEX Gold Trust (IAU)
SPDR Gold Shares (GLD)
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