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Gold ETFs declined slightly Tuesday as the fiscal cliff draws nearer and nearer. The gold spot price lost .19% to close at $1725.40 per ounce, while the SPDR Gold Trust ETF (GLD) lost .21% and the iShares Gold Trust ETF (IAU) lost .18%.

It appears that gold ETFs and gold spot prices are in a holding pattern, despite finishing on the negative side of flat today. With the fiscal cliff only 48 days away, investors are likely waiting and listening for more details about just how a gridlocked Federal Government is going to handle the cliff this time. If a good deal is not made, one can expect a decline in the U.S. dollar value and thus a spike in gold prices as investors clamor for safety. Likewise, if a good deal is made (very unlikely?) then one can expect a stronger U.S. dollar and perhaps lower gold and gold ETF prices.

On a technical level, the gold ETFs remain even, with near 50 RSI readings and sideways action just below their respective 50 Day Moving Averages. The gold spot price, however, is on a definite negative slope, with a declining RSI and Daily MACD readings. If the gold spot price is the true indicator of where gold ETFs are going, gold prices will likely continue to decline until the possible demise of the U.S. dollar.

Gold ETF Update:

Gold Spot Price: $1729.40/oz, -.19%

SPDR Gold Trust ETF ((GLD): -.21%, 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 GLD is determined by the 24 hour global over-the-counter (OTC) gold market. GLD is the world's largest gold ETF and second largest ETF in existence.

iShares Gold Trust ETF (IAU): -.18%, This ETF reflects the current price and trends of Gold Bullion and so offers exposure to the gold market within a brokerage account. IAU is backed by gold held in trusts located in London, Toronto, and New York. The gold spot price for IAU is set by the London PM Fix Price for spot gold as determined by the London Bullion Market Association.

Bottom line: Gold ETFs finish on the negative side of flat Tuesday as the fiscal cliff draws nearer. Gold ETFs will likely rise if an agreement in Congress is not reached.

Disclaimer: The content included herein is for educational and informational purposes only.

Source: Gold ETFs Catch A Slight Whiff Of The Fiscal Cliff