Gold is Back on the Move, GLD Best Buy
A great look below of the Streettracks Gold Trust (GLD) which just recently found key support at its 50 day moving average and broke out of a downtrend of lower highs. GLD is an ETF that tracks the price of the gold bullion and is the best way to play Gold as an investment.
You can see the resistance and how $80 become the key point to break. The dark blue line is the uptrending 50 day moving average which, well, continues to uptrend.
Click to view, click again to zoom
I mentioned several trade ideas for GLD on December 17th as the ETF was forming a wedge pattern. Following that post you would have a position in GLD at $80 to $81 a share. From that same post here is a little blurb to help explain Gold in a nutshell,
Gold rallies on rate cuts because the dollar weakens and Gold becomes more heavily in favor as a hedge, or insurance against risk. If there are no more rate cuts coming, institutions may gradually begin to step away from gold and back into the dollar for long positions.
GLD is currently trading just under $82.50 and should continue to climb higher from here.
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GOLDEN CALL THERE LIL’ BRO!