Gold In Need Of A Pullback Before Next Leg Higher (GLD)

Share This Article
January 19, 2018 9:26am NYSE:GLD

gld stock

From Mark O’Byrne: Gold is due a correction after its $100 rally since the Fed raised rates, even as Chinese New Year looms as a potential catalyst for demand.

A near 8% gain in a month is quite a move up in a short period of time and ordinarily one would expect a correction. Frequently a 50% retracement of the gains takes place. This could take us back to the $1,300 level which acted as resistance before. Previous resistance frequently becomes support.

We are always a bit nervous when gold prices rise this much, this fast. At the same time the sharp fall in bitcoin and crypto-currencies is leading to an increase in demand for physical gold and there is  robust demand from China ahead of the Chinese New Year.

We are a little cautious in the very short term but very positive in the medium term and see gold over $1,500 in 2018.

The SPDR Gold Trust ETF (GLD) rose $0.72 (+0.57%) in premarket trading Friday. Year-to-date, GLD has gained 2.40%, versus a 4.60% 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 35 ETFs in the Precious Metals ETFs category.

This article is brought to you courtesy of GoldCore.

9 "Must Own" Growth Stocks For 2019

Read Next

Get Free Updates

Join over 50,000 investors who get the latest news from!

Most Popular

Explore More from

Free Daily Newsletter

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

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories