Gold ETFs Continue Reversion
Gold and Gold ETF prices drop further in reversion process
Gold and Gold ETFs continued to drop to the ‘mean’ today, as the gold price per ounce dropped .14% to close at $1764.00, while the SPDR Gold Trust ETF (NYSEARCA:GLD) dropped .09% and the iShares COMEX Gold Trust ETF (NYSEARCA:IAU) lost .12%. Gold prices have been following declining equity prices for the past week, and do not appear to be letting up anytime soon, as the gold spot price MACD is still very negative, along with a near ’50′ RSI, indicating a retreat from previously “overbought” levels.
Gold prices have been known to react in a positive manner to currency weakness spurred by a European financial crisis or the Fed’s monetary easing. Since the Fed has implemented QE3 and the European Financial Crisis continues to fester along, it is odd that gold prices have continued to dwindle as of late, however it is important to note that recent declines are nothing in comparison to the meteoric rise of gold since the beginning of September this year, when financial policy really began heating up.
Gold ETF Update:
Gold Spot Price: $1764.00/oz, -.14%
SPDR Gold Trust ETF (NYSEARCA:GLD): -.09%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account. The gold spot price for NYSEARCA:GLD is determined by the 24 hour global over-the-counter (OTC) gold market. The SPDR Gold Trust ETF (NYSEARCA:GLD) is the world’s largest gold ETF and second largest ETF in existence.
iShares Gold Trust ETF (NYSEARCA:IAU): -.12%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account. The iShares Gold Trust ETF (NYSEARCA:IAU) is backed by gold held in trusts located in London, Toronto, and New York. The gold spot price for the iShares Gold Trust ETF (NYSEARCA:IAU) is set by the London PM Fix Price for spot gold as determined by the London Bullion Market Association.
Bottom Line: Gold prices continue to decline with equity prices, although in the large scale of things, gold prices have a long ways to go to reverse September’s gains.
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