August 25, 2011
Shares of SPDR Gold Shares (NYSE: GLD) are finally correcting after a near parabolic rise over the prior month.
Although gold bullion and Gold Shares tend to make moves that are almost difficult to comprehend, they still can be overbought or oversold, and that is the case now.
Gold shares rose almost 28% in the last two months. Certainly there is reason to be worried about the economy, and inflation is a future concern, but inflation is not yet occurring.
The current correction in Gold Shares could easily take them down to $164.95, the 50% retracement of the last two months rise. Just below this is the 61.*% retracement level at $160.25.
In this range, $160 to $165 is a likely bottom and potential reversal to the upside. A decisive close below $160.25 would point to even lower lows in coming weeks.
Fibtimer.com (http://www.fibtimer.com) does not currently have a position in Gold Shares.