Why The SPDR Gold Trust (ETF) (GLD) Will Break Out This Fall

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September 13, 2017 12:42pm NYSE:GLD


From Collin Kettell: Precious metals analyst David Skarica discusses the volatility in the gold market, and the reasons for a coming decline. A fight over the budget, tax cuts, or the debt ceiling could create further problems.

The technical foundations of the market have been crumbling in recent months. Gold is doing well although a bigger rally has not happened since the general market has held up.

Gold stocks performed well in 2015/2016 due to the markets falling but have lagged in 2017. Investors are less inclined to put funds in gold and precious metal stocks when the markets are performing well. In 2003 gold really took off when the Fed began to cut rates so we are looking for that trigger event again.

For gold, there is resistance at 1350-1370 which needs to be broken however this gives you time to average in. Any fall in the market will be met with further liquidity in PM’s. We could have a very good gold market this spring. We could be back at 2011 highs surprisingly quickly if it breaks out this fall.

We’ve had a recent topping pattern in the dollar. The Fed is unlikely to raise rates and Europe looks like they will taper. We are at the 91/92 dollar support level if it heads below that we could be in the mid-80’s.

David discusses Walbridge (TSE:WM), Mexican Gold (CVE:MEX), and Triumph Gold (CVE:TIG). He discusses how each of them has some fantastic prospects and their future potential.

The SPDR Gold Trust ETF (NYSE:GLD) was trading at $125.60 per share on Wednesday afternoon, down $0.96 (-0.76%). Year-to-date, GLD has gained 14.59%, versus a 12.85% rise in the benchmark S&P 500 index during the same period.

GLD currently has an ETF Daily News SMART Grade of A (Strong Buy), and is ranked #1 of 36 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of Palisade Research.

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