Can Gold ETFs Push Through? Weekly Precious Metals ETF Report
Can Precious Metals ETFs push through their resistance and turn bullish?
Precious Metals ETFs seem to be having a hard time breaking through their respective moving averages, as the gold spot price only rose .34% and the silver spot price rose .59% this past week. The SPDR Gold Trust ETF (NYSEARCA:GLD) rose .39% for the week and the iShares Silver ETF (NYSEARCA:SLV) rose .83% for the week.
Although the gold and silver ETFs posted fair to moderate gains this week, all of these funds seem to be stuck around their respective 50 Day Moving Averages, suggesting that the 50 Day Moving Average is providing a stiff level of resistance for precious metals. In the larger context of equity markets being trapped among three year resistance levels, the performance of precious metals ETFs makes sense this past week, as the S&P 500 and Russell 2000 cannot seem to break out into new bull markets. Precious metals ETFs are likely in the same boat and will probably follow major equity markets and either break out or fall back into bearish territory. ETFs on the Verge of a Breakout?
From a technical perspective, the chart below of the SPDR Gold Trust ETF illustrates the general feeling of precious metals ETFs:
chart courtesy of stockcharts.com
Looking at the chart above, one can see that NYSEARCA:GLD is bunching up along its 50 Day Moving Average and cannot seem to make a decision to turn bullish or bearish. With the energy behind major equities suggesting bullish territory ahead, it is likely that precious metals ETFs will follow equities into bullish territory, should equities go that direction. The 50 Day Moving Average for NYSEARCA:GLD however is a very tough level of resistance, so we might be looking at a bounce off of the ceiling and thus lower prices ahead. Below is a weekly summary of Precious Metals ETFs:
Weekly Gold ETF Update:
Gold Spot Price: $1664.0/oz, +.34%
SPDR Gold Trust ETF (NYSEARCA:GLD): +.39%, 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): +.36%, 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.
Weekly Silver ETF Update:
Silver Spot Price: $30.49/oz, +.59%
iShares Silver Trust ETF (NYSEARCA:SLV): +.83%, This ETF reflects the current price of silver and trends of Silver Bullion and so offers exposure to the silver market within a brokerage account. The iShares Silver Trust ETF (NYSEARCA:SLV) is backed by real silver and the silver price is set by the London PM Fix Price for silver as determined by the London Bullion Market Association.
ProShares Ultra Silver ETF (NYSEARCA:AGQ): +1.72%, This ETF reflects the 2X daily return of the current price of Silver Bullion. The ETF is priced in US dollars based on the afternoon closing price of Silver in London. The ProShares Ultra Silver ETF thus offers double exposure to the silver market within a brokerage account.
Bottom Line: Precious metals ETFs appear to be on the verge of either a breakout or breakdown, with the bullish energy the determining factor for performance. Equity markets face the same challenge, and precious metals ETFs will likely follow the path of equities sometime this week.
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Disclaimer: The content included herein is for educational and informational purposes only, and readers agree to Wall Street Sector Selector's Disclaimer, Terms of Use, and Privacy Policy before accessing or using this or any other publication by Wall Street Sector Selector or Ridgeline Media Group, LLC.
