As Gold Broke Threshold, ETFs Rallied

The price of gold just can’t be stopped these days. Future prices of the precious metal topped $1,100 on Friday, giving related ETFs a push higher, as well.

Investors were driven into gold’s safe arms by a disappointing unemployment report that was the country’s worst in 26 years.

Allen Sykora for The Wall Street Journal reports that December gold peaked at $1,101.90 an ounce, a fresh record for a most-active contract on Comex. December gold eventually settled at $1,097.70 an ounce, while silver was up 11 cents to $17.52.

Who’s going to drive gold prices? Although gold is typically driven by economic factors, these days investors and traders are in the driver’s seat. Many analysts expect the uptrend to stick around for the time being. Eric Lam for Financial Post reports that the seasonal impact that drives gold is also a factor, as September to December has guided gold higher over the past decade.

Before investing in gold or other commodities, be sure you have a stop loss in place that you can execute when the trend winds down.

• SPDR Gold Shares (NYSEArca: GLD): up 23.7% year-to-date

• PowerShares DB Gold (NYSEArca: DGL): up 21.9% year-to-date

• iShares COMEX Gold (NYSEArca: IAU): up 23.5% year-to-date

• ETFS Physical Swiss Gold (NYSEArca: SGOL): up 7.3% since inception

Comments

[eromanga:]

Am I missing something here. Gold has just gone on the biggest run we have seen over the past six months and yet there has been very little change in the emount of gold in the GLD spdr vaults.
During the prior six months, the number of gold bars surged exponentially until it hit around 36m oz...and then it has just stuck there. What is happening?
Has the manager run out of space in the vault? Has there been a big seller? How can we explain the very large volumes traded in the secondary market with the virtual gold ceiling in the amount of bullion in the vaults in London? What am I missing?

Nov 08 08:54 PM