Tuesday, December 08, 2009
Well, it should be interesting to see what happens next for the price of gold. In just the last few trading days, nearly all the bullion that was added to the trust for the world's most popular gold ETF - the SPDR Gold Shares ETF (GLD) - has been summarily removed, almost 14 tonnes just this afternoon as indicated in red below.
Down for its fourth straight day today to about $1,128 an ounce on the spot market, it's now about eight percent below last week's all-time high.
Most expect India's 200 tonne IMF gold purchase price of about $1,045 an ounce to serve as the new floor. Right now, it looks like it's headed for a test of that area and it's already a lot closer than it looks in the chart above which, for today's closing price, used the London PM fix of $1,146 an ounce.