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Streettracks Gold (NYSE: GLD) Nearing New Highs

|Includes: SPDR Gold Trust ETF (GLD)

September 8, 2010

Shares of Streettracks Gold (NYSE: GLD) are on the verge of breaking out and considering the strength of this rally, we could see new highs in coming days

GLD closed on Tuesday, September 7 at $122.70, only 13 cents shy of its all-time closing high of $122.83. If GLD does make a decisive close above this prior high, look for considerably higher highs in coming weeks.

GLD has a great deal of momentum and a breakout appears imminent. GLD is also riding a wave of publicity with gold prices getting a great deal of attention during these uncertain economic times.

If GLD does make a decisive close above this prior high, look for considerably higher highs in coming weeks.

Initial resistance is at $124.23. There is also some resistance at $126.75.

But the odds favor a substantial breakout for this emotional ETF and sector. A new closing high should result in an initial target of $130.00 a share, some 6% above current levels.

GLD is one of those emotional buys that could skyrocket if a breakout occurs. So initial resistance levels could quickly be surpassed. However volatility works in both directions so positions should either be small, or have appropriate sell-stops in place.

Fibtimer.com does not currently have a position in Streettracks Gold but does have a position in the Rydex Precious Metals Fund, RYPMX, a gold stock mutual fund.



Disclosure: Fibtimer.com does not currently have a position in Streettracks Gold but does have a position in the Rydex Precious Metals Fund, RYPMX, a gold stock mutual fund.