Wikinvest Wire

The streetTRACKS Gold ETF flashes another buy signal

Monday, March 17, 2008

Amid all the market panic earlier today and a gold price that was up as much as $30 in Hong Kong before getting pummeled when New York markets opened, share creation at the streetTRACKS Gold ETF (NYSE:GLD) required an additional 10.4 tonnes of the yellow stuff being added to the trust.

Based on previous purchases and the subsequent movement of the price of gold (up an average of $71 just 30 trading days later the last time it was checked), this is likely one more in a series buy signals.
The last time this subject was addressed here, it was noted that "authorized participants" (or somesuch) have been making regular purchases on Mondays - today was no exception.

As shown below, whoever did the coding for their website wasn't particularly optimistic about the gold price requiring four digits.

Full Disclosure: Long GLD at time of writing.

AddThis Social Bookmark Button


Anonymous said...

Nice chart, Tim. Rumor has it that PPT was at work today in the gold market.. up in Asia .. down in NY.. new demand for GLD shares yet no price movement in NY Access trading after 1:30 when the 10 tonnes are purchased.......

Anonymous said...

What is this "buy signal" crap. There is no empirical evidence that GLD purchases are driving the price. Why do you persist in claiming that they do?

- KS

norcal steve said...

How about a chart showing GLD vs. rate cuts?

Tim said...

"Buy signal crap"?? Lighten up KS

Yes, Fed rate cuts vs. GLD inventory or the gold price would be good. I remember buying a chunk of GLD back when they first started cutting rates last year - gold was at $725.

  © Blogger template Newspaper by 2008

Back to TOP